Narayana Murthy’s Infosys, Ratan Tata’s TCS to be affected by Trump’s tariff policy due to….

Narayana Murthy’s Infosys, Ratan Tata’s TCS to be affected by Trump’s tariff policy due to….

  • 18.03.2025 05:08
  • india.com
  • Keywords: Business, Economy, Trade Policy

Trump’s tariff policy impacts Indian IT companies like Infosys and TCS, affecting their US operations. They are hiring locally but face challenges from rising costs and visa restrictions.

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Estimated market influence

Infosys

Infosys

Negativesentiment_dissatisfied
Analyst rating: Buy

Loses Rs 44227 crore due to Trump's tariff policy.

TCS

Negativesentiment_dissatisfied
Analyst rating: N/A

Affected by stricter U.S. immigration policies and potential visa restrictions, despite high profitability.

Hexaware Technologies

Negativesentiment_dissatisfied
Analyst rating: N/A

Could face challenges due to rising costs and visa restrictions.

Tata Steel

Positivesentiment_satisfied
Analyst rating: N/A

Minimal direct impact from US tariffs as most revenue comes from Asia.

PTT Global Chemical

Positivesentiment_satisfied
Analyst rating: N/A

Minimal direct impact from US tariffs as most revenue comes from Asia.

Context

Analysis of Trump’s Tariff Policy Impact on Infosys and TCS

Mitigation Strategies

  • Infosys and TCS have ramped up hiring within the US to mitigate risks posed by Trump’s tariff policy.
  • Rising costs and visa restrictions remain significant challenges for these companies.

Moody’s Warning

  • Global rating agency Moody’s has warned that industries in South and Southeast Asia, particularly the automotive, steel, chemicals, and business services sectors, are most susceptible to US trade policy changes.
  • The US will impose reciprocal tariffs on countries with large trade deficits, such as India, starting April 2, 2025.

Visa Dependency

  • Indian IT giants like TCS, Infosys, and Hexaware Technologies rely heavily on H1B visas for skilled professionals in the US.
  • In 2023, nearly 75% of H1B visas were granted to Indian nationals, highlighting their dependency on these visas.

Market Reactions

  • Infosys shares traded at Rs 1,588 on March 17, 2025.
  • TCS shares dropped 0.48% to Rs 3,494 on the same day.
  • Hexaware Technologies’ stock remained steady at Rs 471.

Minimal Impact on Other Sectors

  • Companies in the steel and chemicals sectors, such as Tata Steel and PTT Global Chemical, are expected to face minimal direct impact due to their significant revenue from Asia.

Long-Term Effects

  • The reliance on H1B visas and rising costs may continue to pose challenges for Indian IT companies in the long term.
  • Competitive dynamics could shift as companies adapt to stricter immigration policies and trade tariffs.