Businesses in India that'll be most badly burnt by Trump tariffs

Indian pharmaceutical industry leaders strongly criticize U.S. President Trump's tariff announcement, arguing it will harm the American healthcare system more than India's economy. They emphasize India's crucial role in supplying affordable medicines, particularly generics, to the U.S., warning that tariffs will lead to drug shortages and price increases for American citizens.

Pharmexcil warns that President Trump's 25% tariff on Indian goods, effective August 1, will increase the cost of essential drugs in the US. India supplies nearly 47% of US pharmaceutical needs, particularly in generics. Finding alternative sources matching India's scale and affordability will be a daunting challenge, potentially harming US consumers and healthcare systems.

Indian refiners are facing pressure as the US and EU intensify efforts to curb Russian oil flows. President Trump announced a 25% tariff on Indian exports, criticizing its Russian imports. State-run refiners are rushing to secure alternative crude, including from the Middle East and West Africa. Rising prices, reduced Russian supply, and geopolitical uncertainties have added to their challenges.

Former Reckitt Benckiser CMD CM Sethi has passed away. He was known for his leadership and key role in expanding the company’s presence in India.

Pharma companies in India are projected to offer an average salary increment of 9.6% in 2025, slightly lower than the previous year but still surpassing the 8.8% average for corporate India. Emerging roles like regen medicine researcher and digital health programme officer are expected to receive even higher increments.

The United States has sanctioned six Indian companies for allegedly engaging in significant transactions involving Iranian petrochemical and petroleum products, breaching US sanctions. The firms, which include some of India’s key petrochemical traders, are now blocked from accessing US assets and barred from dealings with American companies. These sanctions are part of a wider crackdown involving 20 entities across multiple countries, aimed at cutting off Iran’s oil-based revenue streams. The Indian firms have not publicly responded to the action.

Indian electronics exporters, including smartphone manufacturers like Apple and Samsung, are unlikely to face immediate impact from potential US duties. These products are currently under review as part of the Section 232 tariffs. Until the review concludes and new tariffs are announced, electronics exports to the US will continue to benefit from zero import duties.