New Delhi, April 3 -- US President Donald Trump announced sweeping reciprocal tariffs on its trading partners on 2 April, a move aimed at reducing the country's dependency on foreign products amid its ballooning trade deficit. Trump announced a 26% tariff on imports from India, effective 9 April.

Companies in sectors such as apparels & textiles and chemicals, which have a higher exposure to the US, may bear the brunt of the new tariff, given the risk of muted near-term order flows and pricing pressures amid the disruption in global supply chains. That said, a silver lining is that the direct impact of this development on India is likely to be limited.

"At the first glance, the 26% tariffs imposed on India seem rather high, higher than w...