TCS shares fall 3.5% as Trump imposes 27% tax on Indian imports

As earnings season approaches, with TCS scheduled to report on April 10, 2025, markets remain volatile as investors assess the full impact of the tariff measures on India’s export-oriented sectors
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SHAILESH ANDRADE

TCS shares slumped 3.51 per cent to ₹3,419.70 on the NSE today at 11.55 am, following Donald Trump’s announcement of a 27 per cent reciprocal tariff on Indian imports to the United States. The IT giant’s stock fell ₹124.25 from its previous close of ₹3,543.95, trading as low as ₹3,416 during the session.

The newly inaugurated US President has imposed a 10 per cent baseline tariff on all countries, with additional targeted tariffs for specific trading partners. For India, the 27 per cent tariff will affect a wide range of goods and services including processed food, textiles, gems, electronics, and chemicals.

Certain categories are exempted from the reciprocal tariff, including pharmaceuticals, semiconductors, energy products, and articles already subject to Section 232 tariffs. Despite these exemptions, market experts anticipate significant disruptions for Indian exporters, particularly in the IT and textile sectors.

According to Palka Arora Chopra, Director at Master Capital Services, the policy poses “immediate risk” to Indian businesses dependent on the US market. While domestic-focused companies may be insulated, those with US exposure face severe challenges.

The IT services sector faces indirect pressure as client spending may decrease, with analysts projecting conservative growth of 2.5-4.5 per cent for major players. As earnings season approaches, with TCS scheduled to report on April 10, 2025, markets remain volatile as investors assess the full impact of the tariff measures on India’s export-oriented sectors.

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Published on April 3, 2025