Indian textiles, jewellery at risk of 50pc Trump tariffs; pharma, phones exempt

FE Team | Published: August 10, 2025 23:45:03

NEW DELHI, Aug 10 (Reuters): US President Donald Trump imposed an additional 25 per cent tariff on goods imported from India this week, citing New Delhi's continued purchase of Russian oil.
The new import tax, effective 21 days after August 7, will raise duties on some Indian goods to as high as 50 per cent - among the highest levied on any US trading partner.
While some sectors like smartphones, pharmaceuticals and energy are currently exempt from any reciprocal tariffs, other items like gems and jewellery, textiles and some auto components, which make up a large part of Indian exports to the US, will take a hit.
Below are some of the largest exports to the US from India.
Apple Inc suppliers Foxconn Hon Hai, Tata Electronics, Pegatron Corpand Wistron Infocomm are the largest exporters from India to the US, shipping smartphones and other products worth nearly $7 billion in 2024. In the first six months of 2025, the companies have already exported goods worth $11 billion, commercially available customs data showed.
Smartphones are currently exempt from tariffs, in a win for Apple that is gearing up to launch iPhone 17 next month and has gradually increased manufacturing in India as it diversifies from China. Most iPhones sold in the US are now made in India.
Dr Reddy's Laboratories, Zydus Lifesciences, Hetero Labs, Lupin, Aurobindo Pharma and Sun Pharmaceutical are top exporters of drugs and active pharmaceutical ingredients to the US.
In 2024, they shipped goods worth $3.6 billion and from January to June 2025 they have already exported drugs worth $3.7 billion to the US The sector is currently exempt from tariffs as generic medicines are crucial for affordable healthcare.
The United States is the largest market for India's gems and jewellery sector, accounting for goods worth $10 billion last year, making up nearly 30 per cent of its total global sales.
Diamond and gem manufacturers Shree Ramkrishna Exports, Gia India and Kiran Gems are the largest exporters to the US India's Gem & Jewellery Export Promotion Council has warned that the tariffs could bring the industry to a standstill, especially with competing manufacturing hubs such as Turkey, Vietnam and Thailand being taxed at lower rates.
India's textile industry is already receiving panic-stricken calls from customers after Trump announced the additional 25 per cent tariff. Apparel and textile companies like Shahi Exports, Welspun, Indo Count Industries, Trident and Gokaldas Exports are top exporters that are likely to take a hit with tariffs rising to 50 per cent.
In 2024, the companies exported goods worth over $2 billion and in the first half of 2025 shipped products of about $1 billion to US clients including Walmart, Target, Costco and Gap .