“Trump’s 50% Tariffs from Aug 27: Impact on India & Stocks to Watch”

How the U.S. Tariff Hike (effective Aug 27, 2025) Will Hit India — Deep Dive & Stocks to Watch

Quick overview • Sectors most exposed • Company-level watchlist • investor checklist

Snapshot

The sudden U.S. tariff increase will sharply raise costs for many Indian goods shipped to the U.S., hitting labour-intensive exports first (gems & jewellery, textiles, leather, marine). Expect order cancellations, margin pressure and a swift re-pricing of exposed exporter stocks.

Sector-by-sector impact (deep dive)

Gems & Jewellery

Immediate order slowdowns for cut & polished diamonds and jewellery. High inventories, thin margins and large employment exposure in polishing hubs. Watch receivables and inventory days for listed exporters.

Textiles & Apparel

Large U.S. buyers may shift sourcing to Bangladesh/Vietnam; expect 20–30% shipment declines for some players and severe working-capital stress among MSME exporters.

Leather & Footwear

Price competitiveness hit; some client orders may move to alternate suppliers. Monitor factory utilisation and export order books.

Marine / Seafood (shrimp)

Shrimp exporters to the U.S. will face margin squeeze and potential volume loss; inventory markdowns likely if demand softens quickly.

Engineering, Furniture, Carpets

Select HS-coded product lines will be affected; impact is product-specific — check company HS exposure and buyer base.

Pharma & Electronics

Largely less affected today (depending on exemptions). Continue monitoring policy notices for any changes.

Stocks likely to be affected — watchlist (examples)

The list below highlights companies with meaningful exposure to export sectors noted above. Use % revenue to U.S. (from company filings) to prioritise positions.

Gems & Jewellery

Titan — TICKER: TITAN
PC Jeweller — TICKER: PCJE
Kalyan Jewellers — TICKER: KALYANKJIL

Textiles / Home Textiles

Welspun India — TICKER: WELSPUN
Trident — TICKER: TRIDENT
Indo Count — TICKER: INDOCOUNT

Marine / Seafood & Agro

Avanti Feeds — TICKER: AVANTIFEED
(Plus smaller listed seafood exporters)

Leather / Footwear & Others

Bata India — TICKER: BATAINDIA
Relaxo — TICKER: RELAXO
Select engineering exporters (case-by-case)

Stocks to consider for relative safety

Domestic-consumption names (FMCG, large retail) and IT/services exporters have lower direct exposure to U.S. goods tariffs. They may outperform in the near term if export-heavy names are sold down.

Investor checklist — immediate actions

1. For each holding, confirm % revenue from the U.S. and HS-code exposure (from latest filings).
2. Watch upcoming quarterly guidance and analyst notes for earnings revisions.
3. Trim highly-levered midsmall exporters that lack cash buffers.
4. Prefer large diversified firms or strong domestic franchises for tactical defence.
5. Keep a liquidity buffer: earnings downgrades and FX volatility can create buying opportunities later.

Note: Impact will vary by specific HS codes and buyer contracts. Company-level filings (annual report / investor presentations) are the best primary source for % geography exposure.

SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.

Written by Indian-Share-Tips.com, which is a SEBI Registered Advisory Services