US President Donald Trump has announced a 25 percent tariff plus penalty on Indian goods coming to the US from 1 August. Due to this, the stock market may decline on Thursday, July 31. Such apprehension has been expressed by market expert and Kotak Mahindra AMC managing director Nilesh Shah. Shah said that there is a possibility of market response to the US decision to impose tariffs on Indian imports. American policymaking is often unpredictable, ie when what happens, nothing can be said. But despite this, there was a hope of reaching an agreement in terms of tariffs in view of good strategic coordination between the two countries.
But now from 1 August 2025, the US will impose 25% tariff on imports from India. Also, penalty will also be applicable. However, Trump has not yet revealed how much the penalty will be. The US has imposed a penalty on India to buy military equipment and oil from Russia.
Nilesh Shah further said, “If there is a better understanding, the market will now expect a tariff adjustment through ‘TACO’ trade, ie constructive outkap.
Which shares may shock on Thursday
The US’s 25% termin may have a profound impact on companies such as Sun Pharmaceuticals, Lupine and Dr. Reddy’s Laboratories in Indian stock markets on 31 July. According to a CNBC-TV18 report, more than half of Indian pharmaceutical companies are exported to the US. Apart from this, exporters of electronics, shrimp, gems and jewelery may also face a lot of pressure from August 1.
What will happen to the Indo-US mini trade deal?
Final efforts are being made for the interim trade agreement between India and the US. US President Trump has said that the trade agreement with India has not yet been finalized. A team from America is going to visit India on 25 August to talk on the trade deal. In the 5th round of talks in Washington last week, subjects related to customs and trade facilities were discussed. The two countries are trying to finalize the first phase of the bilateral trade agreement by September-October. An interim agreement is expected before that.
The US currently has a trade deficit of $ 45.7 billion with India. India’s exports to the US increased by 22.8 percent to $ 25.51 billion in the April-June 2025 quarter. Import rose 11.68 percent to $ 12.86 billion.
How much impact on James and Jewelery Industry
Colin Shah, managing director of Cama Jewelery, says, “US President Donald Trump’s 25% tariff on India and a penalty to impose penalty for weapons and energy purchase from Russia is a major setback for India. America, India, India’s James & Jewelery will be an important market for exports. In such a situation, these decisions will affect those sectors which are dependent on the economy and which are the last two. For years, the James and Jewelery Industry of India is already under pressure due to Russia-Ukraine War and Middle East. Will be necessary. “
Disclaimer: Advice or idea experts/brokerage firms given on Moneycontrol.com have their own personal views. The website or management is not responsible for this. Moneycontrol advises to users that always seek the advice of certified experts before taking any investment decision.