From August 27, new US tariffs will double to 50%, threatening India’s exports, jobs, and competitiveness.
India’s export sector is facing a significant challenge as the United States will impose an additional 25 percent tariff on Indian-origin goods beginning August 27, pushing total duties to 50 percent in many categories. The hike affects roughly two-thirds of India’s annual exports to its largest trading partner, raising serious concerns about job losses and supply chain disruptions.
Industry associations warn that nearly 55 percent of Indian exports to the U.S., valued at approximately USD 47–48 billion, could become uncompetitive, with exporters facing a 30–35 percent disadvantage compared to global competitors. Meanwhile, labour-intensive sectors including textiles, gems and jewellery, and seafood are particularly vulnerable; some forecasts suggest export volumes could decline by as much as 70 percent.
Market reaction has been swift: the Indian rupee weakened sharply, and equity indices like the Sensex and Nifty erased gains seen in August. Exporters and officials are now urging swift government action, including financial support and market diversification, to mitigate the fallout.
Source: NDTV, ET
