Indian shares set to be impacted by US President Donald Trump’s 25% tariffs, which will become effective from August 1, 2025, are some of the large players in the IT, auto, and pharma space, both short-term jolts and overall market volatility moving domestic confidence.
IT Stocks: Infosys, Wipro, TCS
- Infosys and Wipro and peer companies like TCS have had their shares plummet ever since the tariff announcement.
- While the 25% tariff itself does not impact IT services directly, its secondary effects on US-based client budgets, contract renewal, and overall IT expenditure will cause damage to revenues.
- Infosys ADRs slid 0.73% and Wipro ADRs 1.79% on news of the announcement, with TCS declining more than 2.5% on local exchanges.
- The US is responsible for some 70% of Indian IT export revenue, thus multiplying vulnerabilities to American market volatility.
- Larger Nifty IT shares experienced losses ranging from 12% to 40% in 2025, with experts observing that policy fluctuations such as increased US inflation risk can dampen US business outsourcing and overall industry demand.
Auto Stocks: Tata Motors and Auto Component Manufacturers
- Tata Motors, a major exporter through Jaguar Land Rover (JLR), is hit directly because of a 25% tariff on auto vehicles and components imported into the US, with its shares declining more than 4.5% following the announcement.
- Over 30% of JLR’s sales are from the US. Increased prices for Indian autos and components may soften US-bound sales and squeeze margins.
- Auto parts manufacturers such as Sundram Fasteners, Motherson, and Sona Comstar export significantly to the US and risk losing their price competitiveness with competitors from tariff-free nations such as Mexico, Canada, and lower-tariff Japan.
Pharmaceuticals: Cipla, Gland Pharma among others
- The pharmaceutical industry might be spared immediate direct tariffs, as existing policy (up to July 31) continues to exempt formulations of drugs and active ingredients from the across-the-board tariff.
- But Trump’s threat of potential future tariffs—puts the sector on notice, particularly for generic exports and firms such as Cipla and Gland Pharmaceuticals.
- India exports nearly 45% of US generics, and a shift towards tariffs would greatly increase US healthcare costs and take away from Indian exporters’ share.
- Cipla and Piramal Pharma are considered relatively better-placed with their presence in the US, though industry leaders such as Sun Pharma and Dr Reddy’s caution that uncertainty remains and cost hikes may end up reaching US consumers.
Market and Broader Impact
Indian benchmark indices (Sensex, Nifty) are likely to witness short-term falls, with industries such as textiles, jewelry, electronics, and chemicals also in danger.
Experts warn that India’s robust, locally fueled economy can ease the blow somewhat, but the export sector’s profits and investment prospects continue to be under threat.
Overall, US tariffs starting August 1 are already rattling Indian blue-chip stocks across technology, automotive, and pharmaceutical sectors, with Infosys, Wipro, Tata Motors, Cipla, and GSK Pharma likely to experience the immediate market volatility considering their exposure to US business and export. The ultimate extent of influence remains dependent on changing policy details and competitive reaction in international markets.
