A fresh jolt has hit India&rsquo;s export economy as the United States doubled tariffs on a wide range of Indian products, taking total duties to a staggering 50 per cent. The move, ordered by President Donald Trump, comes as punishment for India&rsquo;s continued purchase of Russian oil, adding strain to one of the world&rsquo;s most crucial strategic partnerships.
The higher tariffs, effective Wednesday, cover garments, gems and jewellery, footwear, furniture, sporting goods, chemicals and other key categories, sectors that form the backbone of India&rsquo;s exports to America. At the same time, sensitive areas such as pharmaceuticals and computer chips remain exempt, though officials warn those could face scrutiny later.
Trump, reinforcing his &ldquo;America First&rdquo; stance, shared a picture of himself with an oil barrel on his Truth Social account with the message: &ldquo;America is back.&rdquo;
Shrimp, Gems and Textiles Face Tariff Heat
India Braces Prime Minister Narendra Modi responded firmly, declaring he would &ldquo;never compromise&rdquo; the interests of India&rsquo;s farmers or economic sovereignty. Government estimates suggest that nearly $48.2 billion worth of Indian exports could be directly affected, making shipments commercially unviable and threatening jobs across several sectors.
Former Foreign Secretary and Rajya Sabha MP Harsh Vardhan Shringla underlined that India is already moving to diversify. &ldquo;We have Free Trade Agreements with Australia, the UAE, and the UK, and are close to concluding one with the EU. This means we can access alternative markets and divert exports,&rdquo; he said. He added that the bilateral relationship remains &ldquo;multi-faceted and values-driven,&rdquo; and pointed to the appointment of Sergio Gor as the next US Ambassador to India as a &ldquo;positive signal.&rdquo;
Economic risks deepen 
A State Bank of India Research note warns that India&rsquo;s GDP could take a 40&ndash;50 basis points hit, alongside a spike in input-cost inflation. It cautions that $45 billion in exports may face disruption, potentially swinging India&rsquo;s trade surplus into a deficit.
There are also fears that India could lose its competitive edge against rivals like China, Vietnam, and Indonesia, which face lower US duties. While Indian textiles had gained market share in America as Chinese dominance waned, the new tariffs could reverse those gains.
The gems and jewellery sector, heavily dependent on the US, which accounts for nearly a third of its $28.5 billion annual shipments, faces the sharpest disruption. Shrimp exporters, who send more than half of their output to American buyers, are equally worried about cancelled orders and plunging demand.
With the world&rsquo;s largest democracy and the oldest still negotiating a $500 billion trade deal by 2030, the latest tariff escalation threatens to derail momentum just as talks had gathered pace.

Trump’s Tariff Bomb Hits Indian Exports

US slaps 50% duty on Indian goods, sparking trade tension and growth concerns

Trump’s Tariff Bomb Hits Indian Exports

US slaps 50% duty on Indian goods, sparking trade tension and growth concerns

August 27, 2025 | 11:34 IST