Stocks got "Trumped"

For all the pics of bonhomie and perceived friendship, Trump yesterday announced that “friend” India will be paying a 25% tariff from August 1. He also noted that New Delhi will have to pay additional penalty due to its oil and military purchase from Russia in the face of the ongoing war in Ukraine.

This fact has naturally pulled down the markets but it’s probably more important to understand the sectors/companies that could be impacted.

The sectors that will face the maximum heat are:

Aquaculture

Seafood is one of India’s top agri-exports to the U.S., accounting for 35–40% of total Indian seafood exports and the sector would be among the hardest hit after textiles and gems.

• Major companies affected:
  • Avanti Feeds
  • Apex Frozen Foods
  • Waterbase
  • Coastal Corp

Textiles & Apparel

• Impact: Severe
• U.S. is India’s largest apparel export market.
• Indian products like cotton garments, home linens, and woven wear will lose price competitiveness.
• Major companies affected:
  • Welspun India
  • Arvind Ltd
  • KPR Mill
  • Gokaldas Exports
  • Page Industries (if exports ramped recently)

Auto Components

• Impact: High
• India exports a wide range of auto parts (e.g., shafts, gearboxes, castings) to U.S. OEMs.
• Tariff increases would make Indian parts costlier than China/Vietnam/Thailand alternatives.
• Major companies affected:
  • Motherson Sumi
  • Bharat Forge
  • Sundram Fasteners
  • Bosch India

Gems & Jewellery

• Impact: Severe
• India is the world’s largest diamond polisher, exporting to U.S. retailers.
• Luxury goods get hit hard under tariff barriers.
• Major companies affected:
  • Titan (Tanishq exports)
  • Vaibhav Global
  • Kalyan Jewellers (limited but growing export profile)

Companies that could gain:

If Indian goods become expensive due to tariffs, Indian or U.S. companies with local bases may gain:

• Tata Motors (Jaguar Land Rover U.S. presence)
• Infosys, TCS, Wipro (services not impacted by goods tariff)
• U.S. domestic manufacturers (textile mills, auto parts, pharma)

This tariff move may be strategic rather than economic — part of a populist, election-driven stance. Whether it sticks or is negotiated down will determine long-term impact. Watch out for India's counter-tariff response, diplomatic talks and sector-specific exemptions or quota adjustments.