Day: April 3, 2025

The Department of Commerce is closely studying the potential opportunities that may emerge as a result of recent tariff hikes imposed by the United States, the Ministry of Commerce said on Thursday. The government has confirmed that it is carefully reviewing the implications of the announcements made by the US, with an emphasis on identifying how India can benefit. 

In addition, the commerce department has been actively engaging with various stakeholders, including Indian industry representatives and exporters, to gather valuable feedback. This approach aims to assess the impact of the US tariff increases and explore avenues for Indian businesses to capitalise on the evolving trade landscape.

US President Donald Trump on Thursday morning (IST) announced the imposition of reciprocal tariffs ranging from 10 per cent to 50 per cent on imports from all trading partners. The baseline 10 per cent tariff will take effect from April 5, while the higher 27 per cent rate will be enforced from April 9. However, certain sectors, including pharmaceuticals, semiconductors, and energy products, have been exempted from these duties. 

“The Department of Commerce is carefully examining the implications of the various measures and announcements made by the US President,” the statement noted. 

Meanwhile, India and the US are negotiating a bilateral trade agreement. The negotiations are centred on fostering increased trade, investments, and technology transfers between India and the US. It may also provide some relief to Indian exporters in terms of tariffs. 

“We remain in contact with the Trump Administration regarding these matters and anticipate making progress in the coming days,” the statement added.

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As the world braces for the economic impact of US President Donald Trump’s latest tariff measures, the White House provided a list of exempted commodities.   

The biggest win? India’s pharmaceutical sector, which has temporarily avoided the new levies. This is significant, as India currently imposes a 10 per cent tariff on American pharma imports, while the US does not charge any duties on Indian pharma products.  

What’s exempt from Trump’s tariffs?

Following the Rose Garden ceremony, the White House confirmed that certain goods will be spared from the new tariffs set to take effect on April 5. The list includes:  

Pharmaceutical products

Semiconductors

Lumber articles

Copper and gold 

Energy resources and select minerals unavailable in the US

Additionally, aluminium and steel products, automobiles, and auto components are also exempt, as they are already covered under Section 232 duties.  

Industry experts say India’s pharmaceutical sector is the biggest winner in this tariff strategy. The country imports $800 million worth of pharmaceutical products from the US while exporting $8.7 billion worth of pharma goods to the American market.

Electronics sector set to gain?

Meanwhile, a BBC report suggests that India’s electronics sector could also benefit. With higher US tariffs on countries like Vietnam, some supply chains may shift toward India, boosting the country’s exports in this space.

With the April 5 deadline approaching, analysts are closely monitoring how these tariff exemptions reshape global trade dynamics. For now, industries spared from the latest levies can breathe a sigh of relief. 

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President Donald Trump’s tariff announcement on Wednesday triggered significant after-hours trading reactions. Dow Jones lost 751 points, or 1.8%. S&P 500 futures tanked 3% and Nasdaq-100 futures lost 3.8% after hours. Shares of multinational companies were hit.

Trump declared at least 10% tariffs on practically all goods imported into the United States. He further revealed a chart, detailing revised tariff rates for most of the country’s trade partners.

As soon as the president signed the executive order, Nike lost 7% and Apple’s shares fell 6%. Five Below took an 11% hit and Gap plunged 12%. Tech shares, including Nvidia at 4%, were down after hours. Elon Musk-led Tesla tanked by 5%.

Technology and semiconductor stocks also saw steep after-hours losses, driven by the global supply chain implications of tariffs on countries like Taiwan (32%) and China.

Indian, Japanese, and Chinese stocks also fell in extended trading. The iShares MSCI India ETF dropped around 2.8%, while the iShares MSCI Japan ETF (EWJ) declined 3.2%. The iShares MSCI China ETF (MCHI) tanked by about 2.4%.

Ralph Lauren dropped more than 5% and Estée Lauder declined 3.5%.

“What was delivered was as haphazard as anything this administration has done to date, and the level of complication on top of the ultimate level of new tariffs is worse than had been feared and not yet priced into the market,” Art Hogan, chief market strategist at B Riley Wealth Management, told CNBC.

“When the press conference first started the President said tariffs would start with a 10% baseline across the board. That was better than expected, which was why we saw futures rallying,” Chris Zaccarelli, chief investment officer at Northlight Asset Management, told Bloomberg.

“But once he got to specifics and started giving examples which were significantly higher than 10%, that’s when futures turned around and went negative,” Zaccarelli added.

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