Navin Fluorine, SRF, GFL, UPL tumble upto 6.5%: Top reasons behind the fall

Trump tariffs impact on chemical stocks: Chemical stocks like Navin Fluorine, SRF, Gujarat Fluorochemicals (GFL), Deepak Nitrite, UPL, and several others were under pressure on Thursday, April 3, 2025, as these scrips tumbled up to 6.5 per cent in intraday trading on BSE.

The decline in chemical stocks followed the announcement of new tariffs by US President Donald Trump, who imposed a 27 per cent tariff on all imports from India. 

In his "Make America Wealthy Again" address at the White House, Trump referred to India's high tariffs, claiming that India imposes a 52 per cent tariff on US products, while the US had charged very little in return. The move is seen as a response to India's trade practices, with Trump calling it a "reciprocal" action.

Chemical companies with major exposure to the US market, analsyts believe, were the most impacted by this move.

"The United States has increased tariffs on chemical imports from 3.5 per cent to 27 per cent, putting significant pressure on the chemical sector. Companies such as Navin Fluorine, PI Industries, and SRF, which have revenue exposures of 25 per cent, 20 per cent, and 7 per cemt, respectively, were impacted the most," said Ravi Singh, SVP of retail research at Religare Broking.

Among the hardest-hit stocks, Navin Fluorine dropped 6.48 per cent to an intraday low of ₹3,970.35, while SRF fell 5.84 per cent to ₹2,807. Gujarat Fluorochemicals saw a decrease of 3.17 per cent, trading at ₹3,816.65. Deepak Nitrite declined 3.06 per cent to ₹1,970.80, and UPL was down 2.79 per cent to ₹636.

Other notable falls included Atul, down 2.57 per cent to ₹5,682.40, PI Industries falling 2.37 per cent to ₹3,420, Chambal Fertilisers down 1.92 per cent to ₹622, PCBL declining 1.40 per cent to ₹429.35, and Tata Chemicals dropping 1.27 per cent to ₹841.05.

In contrast, some stocks, like Himadri Specialty and Galaxy Surfactants, bucked the trend and were trading in the green zone. Galaxy Surfactants rose 2.06 per cent, hitting an intraday high of ₹2,290, while Himadri Specialty soared 2.80 per cent to hit an intraday high of ₹467.55.

Who else will get affected?

In his announcement, Trump outlined new tariffs on imports from various countries, which include a 10 per cent universal baseline tariff applicable to all nations. 

The specific tariffs for different countries, inclusive of this baseline, include China at 34 per cent, the EU at 20 per cent, Vietnam at 46 per cent, Taiwan at 32 per cent, Japan at 24 per cent, South Korea at 25 per cent, Thailand at 36 per cent, Switzerland at 31 per cent, Indonesia at 32 per cent, and Malaysia at 24 per cent. 

Other countries like Cambodia will face the highest tariff at 49 per cent, while the United Kingdom, Brazil, and Singapore are each subject to 10 per cent. 

Additionally, tariffs on South Africa, Bangladesh, and the Philippines are set at 30 per cent, 37 per cent, and 17 per cent, respectively, while Israel will be charged 17 per cent, and the Philippines will face 17 per cent as well. These new tariffs come as part of Trump's broader trade strategy aimed at adjusting trade imbalances.