Donald Trump’s tariff impact: What’s likely to get more costly for you — Jewellery, iPhones, Nikes & more, check here

Trump Tariff Impact: United States President Donald Trump has unveiled a comprehensive tariff policy, imposing at least a 10 per cent duty on nearly all goods entering the US.

A total of 180 countries were hit by sweeping reciprocal tariffs on April 2, which Donald Trump justified by citing “horrendous imbalances” in the trade sector that he claimed have weakened the country's “industrial base” and posed national security risks.

The White House said the move is aimed at “correcting trade imbalances” and “bolstering American” industries. Most of the announced tariffs will come into effect by April 3 (auto imports), April 5 (non-USMCA trade) and then April 9 (reciprocal tariffs).

From gems and jewellery, to automobiles and iPhones, we take a look at what will likely be impacted by Donald Trump's tariffs tantrum.

Trump Tariff War: Why Tariffs on India?

The US under Donald Trump has imposed a flat 26 per cent tariff on all goods imported into the country from India. In its statement, the White House noted that the US has a $46 billion trade deficit with India, according to a Reuters report. It said:

• the US imposes 2.5 per cent tariff on passenger vehicle imports, while India imposes 70 per cent.
• Indian apples enter the US duty-free, while India imposes 50 per cent duties for US apples.
• It also pointed out that US takes Indian rice at 2.7 per cent tariffs, while India charges 80 per cent for rice imports.
• And network switches and router enter the US duty-free, while India charges 10-20 per cent rates.

Trump Tariffs: What Does it Mean for India-US Trade?

India and the US have a $14 billion strong electronic trade, besides $9.9 billion markets for gems and jewellery. Overall, Indian exports to the US in FY24 reached $77.5 billion, while, India's imports from the US dropped to $42.2 billion in the same period, down 17 per cent.

Brokerage firm Motilal Oswal told Livemint that India’s top exported items to the US are electronics (15.6 per cent of total exports to the US), gems and jewellery (11.5 per cent), pharma products (11 per cent), machinery for nuclear reactors (8.1 per cent) and refined petroleum products (5.5 per cent).

For India in particular, Donald Trump announced a 26 per cent reciprocal tariff—half the rate India imposes on US imports. In addition to this, the earlier announced 25 per cent tariff on automobile imports is also expected to hit Indian auto companies such as Tata Motors.

Notably, Donald Trump spared sectors such as copper, energy and minerals, gold, lumber articles, pharmaceuticals, and semiconductors, adding that sector-specific tariffs will be imposed at a later date.

Trump Tariff Impact: What's likely to get more costly for you?

• Gems and jewellery made up 12.8 per cent ($9.9 billion worth) of India's exports to the US in FY24. According to experts, this is the sector that will be worst hit by tariffs and rising gold prices may also deepen the impact.
• India has been cutting costs on military and oil purchases by diversifying to Russia and UAE, but with pressure over what we export from the US — which sells these for a high cost, the bill may up.
• In terms of fast fashion, Trump's 46 per cent tariffs on Vietnam are expected to lead to higher prices for Adidas and Nike shoes, Bloomberg reported. Currently, nearly half of Nike's shoes are produced in Vietnam, according to its 2024 Annual report. Meanwhile, Adidas sources 27 per cent of its products from Vietnam.
• Similarly, for Apple iPhones, largely produced in Asia, the price tag globally, including in India, could increase to accomodate the higher tariffs, according to another Bloomberg report.
• Notably, AirPods, iPads, Apple Watches and Macs are produced in Vietnam (46 per cent tariffs); Mac computers in Malaysia and Thailand (24 per cent and 36 per cent levies, respectively; iMacs in Ireland (EU's 20 per cent tariff applicable). Apple customers will have to brace for price increases.
• The US tariffs on passenger vehicle imports, auto parts imports, and aluminium and steel imports is also expected to lead to increased prices across the board for cars, heavy machinery and raw materials trade.
• Markets veteran Ajay Bagga in an interview with ANI said that Indian textiles, engineering goods, electronics, and gems and jewellery exporters are likely to see immediate impact.
• Further, India’s shrimp, basmati rice, and buffalo meat exports to the US—a trade worth billions—face fresh uncertainty. The items could cost more to buy in international markets, especially the US.

(With inputs from Agencies)