Key sector exports, supply chains likely to be shaken up

The reciprocal tariffs imposed by US President Donald Trump will disrupt Indian exports in key sectors such as engineering and electronic goods, potentially reshaping supply chains and cutting export revenue as businesses brace for impact.

- Rhik Kundu

The US is one of India's largest trading partners and its top export destination, with bilateral merchandise trade reaching $119.72 billion in FY24, including $77.52 billion in exports and $42.20 billion in imports.

According to a report by Kotak Institutional Equities on Thursday, key export sectors such as engineering goods, and specialty chemicals are among the worst impacted by the reciprocal tariffs.

"The imposition of a uniform 27% reciprocal tariff on India's exports to the US will likely have a large negative impact on the profitability and possibly volumes of sectors and companies with a meaningful portion of their revenues from the US market," the report said.