Services, auto, steel and chemical cos most exposed to US tariffs: Moody’s

New Delhi: The imposition of tariffs by the US presents varying risks to rated companies in South and Southeast Asia, according to a report by Moody’s Ratings released on Monday. “Companies in the automotive, steel, chemicals and business services sectors in the region are most exposed to evolving US policies, including higher tariffs, which could reduce demand and increase costs,” it added.

India, a major labour source for IT industry, saw around 75% of H1B visas issued in 2023 go to Indian nationals.

While business service providers may face risks from changes in US immigration policy, companies such as Tata Consultancy Services (TCS) and Infosys, with their “industry-leading profitability,” are better positioned, the report noted.

In the mining, oil and gas sector, most rated companies are not directly exposed to US tariffs, Moody’s said. For automakers and auto-parts suppliers sector, Moody’s highlighted that vehicle exports to the US are limited – around 3% of total exports for India and 1% for SE Asia.

The US runs a trade deficit with most South and Southeast Asian countries, including India.