Trump’s tariffs: Tata Motors, Sun Pharma to TCS — these five stocks in focus. Do you own any?

Trump Tariffs: On April 2, US President Donald Trump introduced broad reciprocal tariffs on trade partners of the world's largest economy.

Dubbed ‘Liberation Day,’ the announcement applied to over 180 countries without any exemptions. In addition to country-specific tariffs, Trump also introduced a 10% baseline tariff.

However, he set reciprocal tariffs at just half the rate that other countries impose on U.S. products. Even so, this was enough to shake the market, causing Dow Jones Futures to drop over 1.5% following the tariff announcement.

He announced a 26 per cent reciprocal tariff on India, which is half of what India levies on US imports. Additionally, Trump imposed a 25 per cent tariff on automobile imports into the country.

“Trump's decision on reciprocal taxes introduces a new wave of uncertainty in global trade dynamics. For India, this could mean short-term volatility in equity markets, especially in export-driven sectors like automobiles, pharma, and IT. While selective large-cap stocks from these sectors may face pressure due to tariff headwinds, India's strong domestic consumption story remains resilient. Investors should brace for fluctuations but focus on long-term opportunities in sectors less impacted by global trade tensions,” said Amit Jain, Co-Founder of Ashika Global Family Office Services.

Stocks in focus

According to Sandeep Pandey, Founder of Basav Capital, said, “US President Donald Trump's 26% reciprocal tariff on India is expected to have the greatest impact on the automotive, IT, and pharmaceutical sectors. As a result, companies in these industries are likely to stay in the spotlight following the tariff's implementation on India, Japan, and other nations.”

However, the reciprocal tariffs by Trump will have both short-term and long-term implications for India’s economy, trade relations, and currency markets also, says Ankur Sharma, Market Analyst, VT Markets.

Here are sectoral stocks which will remain in focus after Trump's tariffs announcement -

Auto stocks - Tata Motors

Parent of Jaguar Land Rover (JLR), Tata Motors share price to remain in focus on Thursday, April 3, as the company exports vehicles to the U.S.

Shares of leading U.S. automakers dropped significantly in after-hours trading following the announcement, with General Motors declining over 7 per cent, Ford down 4.6 per cent, and Stellantis slipping 4 per cent.

Asian automakers also saw declines on Thursday, with Japan’s Nissan, Toyota, and Honda closing 2.2 per cent, 2.7 per cent, and 3 per cent lower, respectively. In South Korea, Hyundai Motor and Kia each fell by approximately 4 per cent.

IT stocks - Tata Consultancy Services, Infosys

Another sector which will be highly impacted by this is IT. The U.S. has indicated potential tariffs on IT services, a sector where India has substantial exports.

Investors will keenly watch out stock movement of Tata Consultancy Services (TCS), Infosys in Thursday's trading session.

Pharma stocks - Sun Pharma, Lupin

Among pharma stocks, Sun Pharma and Lupin are expected to remain under the radar of Dalal Street observers.

“We can even expect the high impact on Pharma industry. While specific tariff percentages have not been detailed, the U.S. is a significant market for Indian pharmaceutical exports. Increased Tariffs potentially lead to decline in export revenues,” said Sharma.

Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.