India Trump Tariffs: US President Donald Trump has decided to impose an additional 25 percent tariff on goods coming from India. This has increased the total duty to 50 percent. This step has been taken in protest against India's continued purchase of Russian oil. It is feared that this will have a serious impact on India's major export sectors.
Leather Textile Gems Jewelry Affected
The new tariffs will have the greatest impact on sectors such as leather, chemicals, footwear, gems and jewelry, textiles, and shrimp. According to think tank GTRI, this move will make Indian products expensive in the US market, which could lead to a 40-50% drop in exports.
The effect will start from 7 August
The additional 25% duty will come into effect from August 7, while from August 27, this duty will be added in addition to the standard US tariff. India is the only country in the United States to have imposed additional duties or fines for Russian imports, while other buyers such as China and Türkiye have so far been spared from such measures.
What will be the impact on India-US trade?
Bilateral trade between India and the US stood at $131.8 billion in 2024-25, with India exporting $86.5 billion. Many of the sectors that will now be subject to 50% duty, such as textiles ($10.3B), gems and jewelry ($12B), shrimp ($2.24B), and leather ($1.18B), are already important for the US market.
Deep impact on shrimp export
Yogesh Gupta, MD of Mega Moda, said the duty on shrimp will now increase to 33.26%, which was already facing a 15% tariff, a 2.49% anti-dumping duty, and a 5.77% countervailing duty.
Concerns about the textile industry
The Confederation of Indian Textile Industry (CITI) said that the imposition of 50% duty on textiles and apparel by the US is extremely worrying. The US is the largest market for Indian apparel exports, and this decision will severely impact competitiveness.
The gems and jewelry industry was also hit
According to Kama Jewellery MD Colin Shah, the new tariff will have a direct impact of 55% on Indian exports. This will increase costs and cause a 30-35% competitive loss. He said that many orders have already been put on hold.
It is necessary to look for new markets
Yadavendra Singh Sachan, MD, Gromore International Ltd., suggested that exporters should look for new markets to overcome this impact. Exporters are hopeful that the bilateral trade agreement (BTA) between India and the US will soon be finalized. The government aims to complete the first phase of the agreement by October-November. However, there is still no consensus on agriculture, dairy, and GM products.
