Trump's tariffs may hurt Indian chemical exporters' profits

US President Trump has increased tariffs on all Chinese imports to 20%. This change may lead Chinese companies to sell cheaper products in other markets, creating tougher competition for Indian chemical exporters. India's chemical exports to the US were valued at $2.9 billion in 2023-24, making it the largest importer for India. The new tariffs could push Chinese firms to target non-US markets, impacting pricing and margins for Indian companies. Indian chemical exporters, particularly those heavily reliant on the US market, may face reduced profitability. Potential reciprocal tariffs from the US could further affect companies like PI Industries and Vinati Organics, which have significant exposure to the US market.