The announcement of a 25 percent tariff on Indian goods by United States President Donald Trump has sent ripples through Indian markets, with key sectors already beginning to feel the heat. The move, effective from August 1, has sparked broad investor concern, leading to a sharp downturn across most sectoral indices, excluding only fast-moving consumer goods and media.

Textile stocks were among the first to come under pressure, given the industry’s reliance on exports to the US. As one of India’s largest export segments, any additional cost burden threatens to weaken competitiveness and erode margins. The impact on Indian textile industry is expected to be severe, as higher tariffs may shrink export demand and reduce profit margins for manufacturers. The uncertainty is not just confined to textiles. The automobile sector, still recovering from global supply chain disruptions, now finds itself in a haze of ambiguity. While the full impact remains unclear, the industry fears ripple effects, especially for manufacturers dependent on US-bound trade routes and components.

The oil and gas segment, too, suffered a notable decline. This reaction is tied to added non-tariff restrictions imposed on crude purchases from Russia, which have become a vital part of India’s import mix in recent years. These restrictions could disrupt sourcing strategies and raise input costs across energy and petrochemical businesses.

Pharmaceutical stocks did not escape the bearish sentiment either. India’s pharma sector has a long-standing relationship with the US market and the tariff announcement triggered fresh concerns over price competitiveness and regulatory hurdles.

As India navigates this unexpected jolt to its global trade standing, policy analysts and industry bodies are urging calm but calling for swift diplomatic engagement. While market reactions may stabilise in the coming days, the deeper implications for long-term growth and sectoral health remain a pressing concern. Investors and policymakers alike now await clarity on how the government plans to address these evolving challenges.