Trump’s Reciprocal Tariffs: SRF, Navin Fluorine & Other Chemical Stocks Fall Over 4% on US Trade Fears

Shares of leading Indian chemical companies, including SRF Ltd., Navin Fluorine Ltd., Galaxy Surfactants Ltd., and PCBL, fell by up to 4% on Thursday, April 3, following US President Donald Trump’s announcement of steep reciprocal tariffs on Indian imports.

While shares of SRF and Navin Fluorine declined, Galaxy Surfactants and PCBL managed to hold onto opening gains.

Chemical Stock Performance Post-Tariff Announcement

Shares of SRF Ltd. dropped 3.5% on Thursday after closing 3.3% higher on Wednesday, though the stock remains near its 52-week high and has gained 35% so far in 2025, making it one of the year’s top performers.

Navin Fluorine Ltd. declined 2.5% on Thursday after a 1.2% rise in the previous session and has gained 30% year-to-date. Galaxy Surfactants Ltd. surged 8% on Wednesday, trimming its year-to-date losses to 10%, and is up 1.5% on Thursday.

Meanwhile, PCBL Ltd. has surged 21% over the past month, reducing its overall losses for 2025 to 5%.

Impact on Indian Chemical Companies

The US is an important market for Indian chemical exporters. According to SRF’s annual report for FY24, the US accounted for 12% of its total revenue.

Meanwhile, 65% of Navin Fluorine’s overall revenue comes from exports, making it highly vulnerable to increased trade restrictions.

US Imposes 27% Tariff on Indian Imports

In the early hours of Thursday, Indian time, Trump declared that the US had imposed a 27% tariff on Indian products, excluding the pharmaceutical sector.

The new tariff marks a significant increase from the previous import rate of just 3.5% for chemical companies, raising concerns over profitability and global competitiveness.

However, the US has also levied high tariffs on other key chemical exporters, including China (34%), the European Union (20%), Japan (24%), and South Korea (25%). This places India in a relatively better or equal position compared to its global counterparts in the chemical sector.

Outlook 

The latest US tariff hike poses a significant challenge for Indian chemical companies, increasing cost pressures and uncertainty in global trade.

While India remains competitively positioned against other exporters, the impact on profitability and market access remains to be seen. Investors will closely monitor regulatory developments, company strategies, and market reactions in the coming weeks to assess long-term implications.

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