US Tariffs Hit India Hard: What It Means for Trade
By America News World Staff | August 28, 2025
US slaps 50% tariffs on Indian exports starting August 27, affecting textiles and more. Explore impacts, responses, and future outlook for India-US trade. The US has put a big 50 percent tariff on many Indian goods.
This started on August 27, 2025. It hits hard on things like textiles, gems, and leather. But some items like pharma and electronics are safe. Many people in India worry about jobs and money. However, talks are on to fix this mess. And so, let’s look at what happened.
First, why did this happen? The US says it’s because India buys Russian oil. President Trump wants fair trade. He added 25 percent more on top of the old 25 percent. Now, it’s 50 percent for many products. For example, apparel from India faces 63.9 percent duty. That’s a lot. Competitors like Bangladesh pay less. As a result, Indian exporters lose out.
India sent $86.5 billion worth of goods to the US last year. Now, over two-thirds of that faces high taxes. Think tanks like GTRI say exports might drop to $49.6 billion next year. That’s a big fall. Additionally, jobs are at risk. The textile sector alone could lose 15-20 lakh jobs. People in places like Panipat feel the heat. One worker said, “We hope for quick help.”
But there’s hope. Government sources say channels are open. US Treasury Secretary Scott Bessent called the tie “complicated” but said, “At the end of the day, we will come together.” Therefore, both sides talk. India looks at new markets too. They plan outreach in 40 countries. These include the UK, Japan, and South Korea. Together, they buy $590 billion in textiles. India’s share is just 5-6 percent now. So, there’s room to grow.
Moreover, exports rose 21.64 percent in the first four months this year. They hit $33.53 billion. If this keeps up, we might match last year’s total. The government forms committees for help. They want fiscal aid, better credit, and reforms. For instance, expand PLI schemes. Also, push FTAs with the EU and others.
Let’s see some data. India’s top exports to the US:
- Textiles: $10.8 billion (35% of total)
- Gems and Jewellery: High impact
- Shrimp and Leather: Also hit
Furthermore, not all is bad. Pharma, energy, and tech are exempt. These make up key parts. Bilateral trade was $131.8 billion last year. The US is India’s top partner since 2021.
Exporters ask for moratorium on loans. They want one year break on payments. Besides, invest in storage and infrastructure. This builds strength. Industry bodies like AEPC and FIEO lead the charge.
From Quora and Reddit, readers ask: “How do tariffs affect daily life?” Or “Will prices rise in the US?” Many search for “India US trade war impact.” ChatGPT and Gemini say focus on jobs and alternatives. From Brainly and Chegg, students want simple explanations. Wikihow guides on trade basics. Politifact checks facts on Trump policies. So, we cover that here.
In Africa, Asia, Europe, North America, South America, Oceania, and Antarctica regions, this impacts global supply. But India and USA drive traffic. All ages can read this: kids learn basics, adults get details, seniors see economic ties.
Yet, some sectors adapt. Cotton duty waiver helps textiles. And Russian oil isn’t the only issue. Delays in deals played a part. Nevertheless, experts say it’s temporary.
Finally, the government speeds up Export Promotion Mission. They meet stakeholders this week. Chemicals, jewels, all join. Thus, India aims to diversify. In the end, strong ties win. We watch closely.
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