Stock Market Live Updates 3rd April 2025: Stock to buy today: PNB Housing Finance (₹918)
Here is the view from Ankur Sharma, Market Analyst, VT Markets
The announcement of reciprocal tariffs by President Donald Trump on India, Japan, and other nations is a significant development in global trade, particularly for emerging economies like India. These tariffs, aimed at counteracting high import duties imposed by these countries on U.S. goods, will have both short-term and long-term implications for India’s economy, trade relations, and currency markets. The U.S. has announced a 25% tariff on imported automobiles and auto parts, effective April 2 for cars and light trucks, and May 3 for auto parts
Shares of the top U.S. automakers fell sharply in after-hours trading on the announcement, with General Motors down more than 7%, Ford off 4.6% and Stellantis lower by 4%.
Shares of Asian automakers also fell during trading on Thursday. Japanese automakers Nissan, Toyota and Honda are closing down 2.2%, 2.7% and 3%, respectively. In South Korea, Hyundai Motor and Kia both fell about 4%.
Now If we consider the Indian Market so Tata Motors, Parent company of Jaguar Land Rover (JLR), which exports vehicles to the U.S, experienced a 5% decline following the tariff announcement.
Sona Comstar also faces a 4% drop. Nifty Index declined by 1.2%, reflecting concerns.
India has historically also charged a 100 percent tariff on US motorcycles, which it reduced to 30-40 percent in 2018, while the US charges a 2.4 percent tariff on Indian motorcycles
We can even expect a high impact on the 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 a decline in export revenues.
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.
The U.S. reciprocal tariffs are set to have a multifaceted impact on India’s economy, with significant effects on key export sectors and associated industries. The magnitude of these impacts will depend on the duration of the tariffs and the ability of Indian industries to adapt to the evolving trade landscape.
