Indian textiles, jewellery at risk of 50% Trump tariffs; pharma, phones exempt

US President Donald Trump imposed an additional 25 percent tariff on goods imported from India this week, citing New Delhi's continued purchase of Russian oil. The new import tax, effective 21 days after August 7, will raise duties on some Indian goods to as high as 50 percent - among the highest levied on any US trading partner.

While some sectors like smartphones, pharmaceuticals and energy are currently exempt from any reciprocal tariffs, other items like gems and jewellery, textiles and some auto components, which make up a large part of Indian exports to the US, will take a hit.

Below are some of the largest exports to the US from India.

SMARTPHONES

Apple Inc suppliers Foxconn Hon Hai, Tata Electronics, Pegatron Corp and Wistron Infocomm are the largest exporters from India to the US, shipping smartphones and other products worth nearly $7 billion in 2024. In the first six months of 2025, the companies have already exported goods worth $11 billion, commercially available customs data showed.

Smartphones are currently exempt from tariffs, in a win for Apple that is gearing up to launch iPhone 17 next month and has gradually increased manufacturing in India as it diversifies from China. Most iPhones sold in the US are now made in India.

PHARMACEUTICALS

Dr Reddy's Laboratories Zydus Lifesciences Hetero Labs, Lupin Aurobindo Pharma and Sun Pharmaceutical are top exporters of drugs and active pharmaceutical ingredients to the US

In 2024, they shipped goods worth $3.6 billion and from January to June 2025 they have already exported drugs worth $3.7 billion to the US The sector is currently exempt from tariffs as generic medicines are crucial for affordable healthcare.

GEMS & JEWELLERY

The United States is the largest market for India's gems and jewellery sector, accounting for goods worth $10 billion last year, making up nearly 30 percent of its total global sales.

Diamond and gem manufacturers Shree Ramkrishna Exports, Gia India and Kiran Gems are the largest exporters to the US India's Gem & Jewellery Export Promotion Council has warned that the tariffs could bring the industry to a standstill, especially with competing manufacturing hubs such as Turkey, Vietnam and Thailand being taxed at lower rates.

US stocks ended higher on Friday, with the Dow adding nearly half a percent, the S&P 500 climbing more than three-quarters of a percent, and the Nasdaq gaining one percent to notch a record closing high for the second straight day.

TEXTILES

India's textile industry is already receiving panic-stricken calls from customers after Trump announced the additional 25 percent tariff.

Apparel and textile companies like Shahi Exports, Welspun Indo Count Industries Trident and Gokaldas Exports are top exporters that are likely to take a hit with tariffs rising to 50 percent.

In 2024, the companies exported goods worth over $2 billion and in the first half of 2025 shipped products of about $1 billion to US clients including Walmart, Target Costco and Gap.

AUTO COMPONENTS

India's auto components sector has grown rapidly over the last few years and is one of the few industries that records a trade surplus. The US is its largest export market, making up close to a third of global trade.

In 2024, India exported components worth $6.6 billion to the US Of this, over $3.5 billion comprised parts for cars and small trucks that are currently exempt from the 50 percent tariff and will pay just 25 percent. The main exporters include Sona Comstar ,  and Samvardhan Motherson.

However, exports of components for commercial vehicles like large trucks and agriculture equipment, worth about $3 billion, will attract a 50 percent tariff. Bharat Forge, whose customers include companies like Caterpillar and Volvo and John Deere, are among the largest exporters of such parts.

ENERGY AND RENEWABLES

Manufacturers of solar equipment like cells and modules, wind turbines and other energy products have significant exports to the US but with little to worry about so far as they are exempt from tariffs.

Companies including billionaire Mukesh Ambani's Reliance Industries Mundra Solar, a unit of conglomerate Adani Group, Waaree Energies LM Wind Power, Schneider Electric and GE Power,   are among the largest exporters of energy and renewable equipment.