Trump’s 50% Tariff: What will become costlier?
Donald Trump’s 50% tariff on Indian goods is hitting key sectors like textiles, leather, and shrimp. Experts say this could reduce Indian exports to the US by 40–50%, making it even harder for exporters already struggling in a tough market.
On August 6, US President Donald Trump announced an extra 25% tariff on Indian goods, raising the total to 50%. According to industry experts (as reported by PTI), this move could badly affect Indian export sectors like leather, chemicals, footwear, gems and jewellery, textiles, and shrimp.
Donald Trump said the extra 25% tariff is a punishment for India buying oil from Russia. It will start from August 27. So far, only China, India, and Turkey have faced this kind of penalty. Also, another 25% tariff announced earlier on July 31 will begin from August 7 at 9:30 am IST.
Industry experts warn that the new US tariffs will severely hurt Indian exports, possibly reducing them by 40–50%. Seafood exporter Yogesh Gupta noted that Indian shrimp will become costlier due to a total duty of 33.26% from August 7, making it less competitive than Ecuador’s shrimp. The Confederation of Indian Textile Industry (CITI) expressed deep concern, saying the 50% tariff rate will significantly harm India’s textile and apparel exports. According to GTRI, other affected sectors include organic chemicals (54% duty), carpets (52.9%), apparel (over 60%), diamonds and gold (52.1%), machinery (51.3%), and furniture (52.3%).
Who is most likely to bear the cost of the US tariffs?
Colin Shah from Kama Jewelry said the new 50% US tariffs will heavily affect Indian exports, especially since over half go to the US. Indian goods will now cost 30–35% more than competitors from other countries. Many buyers are pausing orders due to the higher costs. Small businesses (MSMEs), which already have low profits, may not be able to handle this price increase and could lose long-term customers.
India–US trade: Which sectors will be most affected?
In 2024–25, trade between India and the US was worth $131.8 billion — with India exporting $86.5 billion and importing $45.3 billion.
The sectors likely to be hit the hardest by the 50% tariff are:
- Textiles and clothing – $10.3 billion
- Gems and jewellery – $12 billion
- Shrimp – $2.24 billion
- Leather and footwear – $1.18 billion
- Chemicals – $2.34 billion
- Electrical and mechanical machinery – around $9 billion
These industries may face serious challenges in continuing trade with the US.
Do you want to catch up on everything? The Headlyne app makes sure that as soon as a headline is created, it reaches straight to your phone without wasting any time! Stay curious and informed with us.
Download the Headlyne app today.
