Indian Exports at Risk as U.S. Imposes 50% Tariff

News: The U.S. has raised tariffs on Indian imports to 50%, dealing a major blow to key export sectors.

The hike, linked to India’s crude oil trade with Russia, adds an extra 25% duty from August 27, on top of the earlier 25% imposed August 7. Sectors like textiles, shrimp, gems, jewellery, machinery, and chemicals face severe competitiveness losses, with exports to the U.S. projected to fall 40–50%, according to GTRI.

Indian shrimp now faces duties of 33.26%, while textiles and apparel could see tariffs up to 80%. Exporters warn of lost clients, paused orders, and unsustainable costs, especially for MSMEs.

With $86.5 billion in exports to the U.S. last year, India risks losing ground in its largest export market.