50% Tariff on Indian Goods Exported to the US Takes Effect

From Aug 27, the US has imposed a 50% tariff on Indian imports, impacting nearly ₹5.4 lakh crore of exports. Key sectors—textiles, gems & jewelry, auto parts, seafood—face the biggest hit, with demand in the US possibly falling by 20–70%. Rivals like China, Vietnam, Mexico are set to benefit. Sector Impact Auto Parts: US takes 32% of exports; ~₹30,000 cr trade at risk. SMEs face job losses. Electronics: $14 bn exports in 2024, mostly iPhones. Exempt now, but may face tariffs later under Section 232. Pharma: $10.5 bn exports (40% of US generic imports). Currently safe, but Trump threatens 150–250% duty. Big firms like

, , Cipla, Lupin exposed. Gems & Jewelry: $9.9 bn exports; tariffs may cut demand 15–30%, hitting artisans. Some firms shifting to Dubai/Mexico. Textiles: $10 bn exports; costs up 50%, demand may fall 20–25%. India’s US market share could drop from 33% to 20–25%. Seafood: ₹60,000 cr exports, ~40% to US. With tariffs, ₹24,000 cr at risk. Rivals like Vietnam, Ecuador gain. Wider Implications Jobs: Export-driven sectors may see layoffs. Economy: GDP growth could dip 0.2–0.6%; govt revenues under pressure. Strategy: India drafting new export plan covering 50 nations, fast-tracking FTAs with UK & EU. Why Now? Trump’s “reciprocal tariff” policy—arguing India charges higher duties on US goods. Strains also linked to India’s oil & defense deals with Russia. Trade Deal? Talks stalled, mainly over agriculture. India resists US demands on GM crops and dairy. Officials eye progress by Sept–Oct.