Explore Business Standard
Enhanced tariffs on pharma imports in the US can severely impact Indian drug manufacturers as it would lead to higher production costs, making shipments less competitive against products from other countries. Smaller drug firms operating on thin margins can face severe pressure potentially forcing consolidation or closure. The automobile sector, on the other hand, is expected to have a very minimal impact owing to the US being a small export market. Terming India as a very high tariff nation, US President Donald Trump has said that reciprocal tariffs on countries that impose levies on American goods will kick in on April 2. India currently levies around 10 per cent import duty on American drugs, while the US doesn't charge any import duty on Indian drugs. Shardul Amarchand Mangaldas & Co Partner Arvind Sharma said as of recent history, the US has been a net importer of pharmaceutical products to meet its domestic demand. "In the event the US decides to impose substantial tariffs
Farmers and meat producers across the US can expect the new tariffs on Mexico, Canada and China and the retaliatory action from those countries to hurt their bottom lines by billions of dollars if they stay in place a while, and consumers could quickly see higher prices for produce and ground beef. But some of the impact on farmers might not be felt until the next harvest and some products might actually get cheaper in the short run for consumers if exports suffer. And the price of corn, wheat and soybeans accounts for relatively little of the price of most products. Plus, President Donald Trump could offer farmers significant aid payments, as he did during the trade war with China during his first administration, to offset some of the losses. In his address to Congress Tuesday night, Trump argued that agricultural imports hurt American farmers and asked them to "bear with me again" as he seeks to protect them. He didn't mention any additional aid. I love the farmer, he said. If t
Equity markets will take cues from the US tariff related developments, global trends and trading activity of foreign investors this week, analysts said. Markets may face volatile trends going ahead as investor sentiment continue to remain weak due to escalating trade tariff concerns and foreign fund outflows, experts noted. In February alone, the NSE Nifty tanked 1,383.7 points or 5.88 per cent. The BSE Sensex lost 4,302.47 points or 5.55 per cent last month. From its record peak of 85,978.25 hit on September 27 last year, the BSE benchmark index is down 12,780.15 points or 14.86 per cent. The Nifty dropped 4,152.65 points or 15.80 per cent from its lifetime high of 26,277.35 hit on September 27, 2024. "Investors will be closely watching key events, including the tariff policy, and jobless claims. In the near term, market conditions are expected to remain weak, with a gradual recovery anticipated as earnings improve from Q1 FY26 and global trade policy uncertainties subside," Vinod
Moody's Ratings on Tuesday said India has a lower overall exposure to the US relative to others in the APAC region, although certain sectors such as food, textiles and pharmaceutical products face risks. Moody's said most companies in its rated portfolio are domestic-focused with limited exposure to the US market. To mitigate pressure from reciprocal tariffs, the US and India are reportedly engaged in talks to lower import tariffs on select US products, increase market access for US farm products and increase US energy purchases, while seeking to initiate a trade deal by the fall of 2025. Across APAC, developing countries like India, Vietnam and Thailand have among the widest rate differentials relative to the US, Moody's said. It said electronics, motor vehicles, food and textiles are the most exposed sectors. In addition to the hit from lower export demand, a key risk facing emerging economies in the region is that those aiming to nurture an export-led growth model similar to Chi
The rupee fell sharply by 51 paise to settle at 87.23 (provisional) against the US dollar on Tuesday due to month-end dollar demand by importers amid uncertainty over US trade tariffs. Elevated greenback against major crosses and sustained FII outflows also contributed to the decline in the domestic unit, forex traders said. At the interbank foreign exchange, the rupee opened weak at 86.83 and kept losing ground through the day before settling at 87.23 (provisional), 51 paise lower than its previous close. The local unit had settled at 86.72 on Monday. "The rupee fell sharply against the US dollar amid uncertainty over US trade tariffs and demand from importers towards the end of the month. Covering of short positions due to the expiry of the futures contract, too, weighed on the rupee. "We expect the rupee to trade negative on the back of overall weakness in the domestic markets and persistent FII outflows. Any recovery in the US dollar may also weigh on the rupee. However, any .