Fresh pain for IT companies as US tariffs threaten revival
BENGALURU: Even as the Indian IT sector looked forward to improved trade clarity by August, potentially boosting US consumer spending, the announcement of 25% tariffs threatens to dampen sentiment and curb discretionary spending, which was only beginning to show signs of recovery.
Nitin Bhatt, technology sector leader in EY India, said, "While the Indian IT services sector isn't directly hit by the newly announced 25% US tariffs, the ripple effects could be substantial. Rising input costs may prompt US companies to scale back discretionary tech spending. Simultaneously, growing unease around workforce mobility and evolving digital taxation frameworks could redefine how cross-border services are priced.
Stay informed with the latest business news, updates on bank holidays and public holidays.
Discover stories of India’s leading eco-innovators at Ecopreneur Honours 2025
Nitin Bhatt, technology sector leader in EY India, said, "While the Indian IT services sector isn't directly hit by the newly announced 25% US tariffs, the ripple effects could be substantial. Rising input costs may prompt US companies to scale back discretionary tech spending. Simultaneously, growing unease around workforce mobility and evolving digital taxation frameworks could redefine how cross-border services are priced.
Stay informed with the latest business news, updates on bank holidays and public holidays.
Discover stories of India’s leading eco-innovators at Ecopreneur Honours 2025
Top Comment
G
Guest
2 days ago
Trump is bulldozing everyone. He who can sustain pressure will be the winner. The nation has to be very very patient and find the opportunity where the US too could be hit very very hard.Read allPost comment
Popular from Business
- Technical snag: Air India cancels Singapore-Chennai flight; offers refunds and hotel stay
- India buying Russian oil an ‘irritant’ for Trump administration! How much crude does India get from Russia & will it stop after US penalty warning? Top 10 points
- ‘More likely to happen in Lagaan, than...’: Harsh Goenka mocks Trump’s ‘Pakistan may sell oil to India’ suggestion; here's the reality of Pak’s ‘massive’ reserves
- Will RBI cut rates? Most economists expect pause
- Evacuated from Kuwait, Rising in Dubai: The Untold Journey of an Indian Businessman — 35 Years After Gulf War
end of article
Trending Stories
- Brooke Hogan’s husband: Hulk Hogan showed no interest in meeting grandkids
- Taylor Swift’s Kelce jacket inspires Kristin Juszczyk’s new NFL line
- Dak Prescott builds new mansion, reveals why he razed the last one
- Gabrielle Union on menopause: 'It makes it hard' — motherhood now more emotional, exhausting
- Hailee Steinfeld's latest workout photos break the internet
- “No foreign students should be in the country right now,” says Steve Bannon: What it means for your H-1B visa and future in the US
- ‘He wants her to feel safe’: Travis Kelce prioritizing Taylor Swift’s privacy
Featured in Business
- Big message! PM Modi strikes defiant ‘Make in India’ note in face of Trump’s tariff & penalty threats; India to continue buying Russia oil
- Stock market today: Nifty50 opens above 24,600; BSE Sensex up over 170 points
- India bets on semiconductors: Aim for big share in $1 trillion global market by 2030, says government; investments, infrastructure drive momentum
- Top stocks to buy: Stock recommendations for the week starting August 4, 2025 - check list
- IPO-bound Arcil eyes retail loans as corp NPAs dry up
- Startups trim team size to woo investors
Visual Stories
- Malavika Mohanan slays in every look she wears
- 10 motivational and inspiring quotes for success
- How to talk so kids will listen: 10 magic phrases
- Kanika Mann’s ethnic game is all about grace and glam
- Transform your boring sandals with trendy DIY embellishments
- Bhagyashri Borse's style statements
- From Pulitzer to Orange: 10 prestigious awards given for Literature
- 10 veggies that can grow in containers in balcony
- 'Kingom' actor Vijay Deverakonda’s stylish looks
- Vijay Deverakonda’s fitness workout routine
Photostories
- The most mispronounced baby names and why parents still love them
- Bigg Boss Malayalam 7 House: From 'Panippura' to a Single Bedroom, A Look Inside the Stunning Mansion
- 10 magical Harry Potter quotes every child should know
- Rajasthan in 7 days: From Jaipur to Kumbhalgarh for a memorable trip
- Top 10 countries with the largest wild tiger populations in 2025
- 6 easy and delicious soybean dishes packed with protein
- 7 early signs of iodine deficiency you shouldn't ignore
- 7 hacks to diffuse conflict with your partner, as per psychology
- 5 best lesser-know luxury t-shirt brands in the world
- 5 simple family traditions that can boost academic performance in kids
Top Trends
Up Next