US Tariffs Hit Indian Exports Hard

The United States has doubled tariffs on Indian imports, raising duties to 50% effective August 27, 2025.

The decision, linked to an Executive Order by President Donald Trump, targets India for continuing to purchase Russian crude oil despite Washington’s sanctions.

Economic Fallout for India

• According to the Global Trade Research Initiative (GTRI), nearly 66% of India’s exports to the US (worth $60.2 billion) are at risk.
• Labor-intensive industries like textiles, gems and jewelry, shrimp, carpets, and furniture may face export losses of up to 70%, threatening hundreds of thousands of jobs.
• GTRI warns the blow could reduce India’s GDP growth by almost 1%.
• Indian goods are now at a competitive disadvantage compared to exports from China, Vietnam, and Bangladesh.
• MSMEs, already under pressure, risk shutdowns as they struggle to absorb higher costs.

Wider Impact

• Analysts warn tariffs may raise inflation in the US as costs shift to consumers.
• India has announced it will not impose retaliatory tariffs, instead considering GST reforms, export promotion drives, and new trade partnerships.

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