Trump Tariffs Hit Gujarat’s Exports
U.S. President Donald Trump has imposed a steep 26% tariff on India, which is set to impact exports worth over ₹80,000 crore from Gujarat to the U.S. Naturally, this move will make several products more expensive in the American market.
According to available data, Gujarat exports more than 2,000 different products to various countries, amounting to ₹11 lakh crore. Of these, about 10% of the exports go to the U.S., with pharmaceutical products forming the largest share. After pharmaceuticals, diamonds rank third among exports from Gujarat to the U.S.
Majority of Products Face 27% Tariff
Trump’s announcement states that products like pharmaceuticals, semiconductors, copper, and energy goods will face 0% tariff, while the remaining majority of products will be taxed at 27%. This gives temporary relief to Gujarat’s major exports—petrochemicals and pharmaceuticals—which have been excluded from the tariff list for now. However, most other products from the region will be hit hard by the new duties.
Gujarat’s U.S. Exports Reach ₹1.12 Lakh Crore
Between April and January of the 2024–25 financial year, Gujarat exported ₹25,500 crore worth of petrochemical products and ₹10,000 crore worth of pharmaceuticals to the U.S. In total, Gujarat’s exports during this period stood at approximately ₹1.12 lakh crore.
Over 3,000 Pharma Plants in Gujarat
Pharma companies in Gujarat, especially in Vadodara, play a significant role in exports to the U.S. Around 15 pharmaceutical plants in Vadodara alone manufacture drugs that are sold in the American market. India exports $12 billion worth of pharmaceuticals to the U.S., and Gujarat contributes around $3 to $4 billion of that.
India is also the source of about 45% of the generic drugs sold in the U.S. Although pharma products have currently been exempted from tariffs, President Trump has hinted at imposing additional tariffs on medicines soon. According to Bharatbhai Desai, Acting President of the Vadodara Pharma Industries Association, it’s hard to predict Trump’s next move, but his recent announcements have definitely increased anxiety in the pharmaceutical sector.