- August 6, 2025
From Textiles To Gems: India’s Key Exports In Trouble As Trump Doubles Tariff To 50%
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US President Donald Trump announced an additional 25% import duty on goods coming from India, effectively doubling the total tariff to 50%
US President Donald Trump (Image Credit: Reuters)
A fresh wave of US tariffs is set to severely hit several of India’s key export sectors, including textiles, gems and jewellery, leather, chemicals, footwear, and shrimp, according to industry experts.
On Wednesday, US President Donald Trump announced an additional 25% import duty on goods coming from India, effectively doubling the total tariff to 50%. The move is being seen as a penalty for India’s continued import of oil from Russia, and will take effect in two stages, the first on 7 August, and the second on 27 August.
Notably, India appears to be the only country facing such penalties over Russian oil imports. Other major buyers like China and Turkey have not been subjected to similar tariff hikes.
Indian Exports Could Fall By Nearly Half
Experts at trade think tank GTRI (Global Trade Research Initiative) warn that these steep tariffs could make Indian goods significantly more expensive in the US market, potentially slashing exports by 40–50%.
“The tariffs are expected to make Indian goods far costlier in the US, with potential to cut US-bound exports by 40–50 per cent,” GTRI said.
After the new tariff, it said, organic chemicals’ exports to the US will attract additional 54 per cent duty. The other sectors which will attract high duties include carpets (52.9 per cent), apparel – knitted (63.9 per cent), apparel – woven (60.3 per cent), textiles, made ups (59 per cent), diamonds, gold and products (52.1 per cent), machinery and mechanical appliances (51.3 per cent), furniture, bedding, mattresses (52.3 per cent).
In the financial year 2024–25, bilateral trade between India and the US stood at $131.8 billion, with Indian exports at $86.5 billion. Key sectors at risk include 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), and machinery ($9 billion).
Exporters Raise Alarm
Yogesh Gupta, MD of Megaa Moda in Kolkata, said India’s shrimp exports are already under pressure from Ecuador, which faces only a 15% tariff in the US.
“We are already facing huge competition from Ecuador as it has only 15 per cent tariff. Indian shrimp already attracts a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty. After this 25 per cent, the duty will be 33.26 per cent from August 7,” Gupta said.
The Confederation of Indian Textile Industry (CITI) expressed “deep concern” over the situation. “The US tariff announcement of August 6 is a huge setback for India’s textile and apparel exporters as it has further complicated the challenging situation we were already grappling with and will significantly weaken our ability to compete effectively vis-à-vis many other countries for a larger share of the US market,” it said.
Similarly, Colin Shah, MD of Kama Jewelry, said, “Many export orders have already been put on hold as buyers reassess sourcing decisions in light of higher landed costs. For a large number of MSME-led sectors, absorbing this sudden cost escalation is simply not viable. Margins are already thin, and this additional blow could force exporters to lose long-standing clients.”
(With inputs from PTI)
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d…Read More
The News Desk is a team of passionate editors and writers who break and analyse the most important events unfolding in India and abroad. From live updates to exclusive reports to in-depth explainers, the Desk d… Read More
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