From Textiles to Gems: Major Indian Exports Hit as Trump Doubles Tariffs to 50%
US President Donald Trump has imposed an additional 25% import duty on products coming from India, effectively raising the total tariff to 50%.
A fresh round of US tariffs is expected to severely impact several of India’s major export segments such as textiles, gems and jewellery, leather, chemicals, footwear, and shrimp, according to experts in the industry.
On Wednesday, US President Donald Trump declared an extra 25% duty on Indian imports, effectively doubling the existing tariff to 50%. The move is being viewed as punishment for India’s ongoing crude oil imports from Russia, and it will be implemented in two phases, the first on 7 August, and the second on 27 August.
Importantly, India seems to be the only country facing such a penalty over purchasing Russian oil. Other large buyers such as China and Turkey have not been subjected to similar tariff hikes.
Indian Exports May Drop by Almost 50%
Analysts from trade think tank GTRI (Global Trade Research Initiative) warn that the steep tariff hike could make Indian products significantly less competitive in the American market, potentially reducing exports by 40–50%.
“The new tariffs are expected to make Indian goods much costlier in the US, with the possibility of cutting exports headed there by 40–50%,” GTRI said.
According to their estimates, with the revised duty, exports of organic chemicals will face a total duty of 54% in the US. Other affected sectors include carpets (52.9%), knitted apparel (63.9%), woven apparel (60.3%), textile made-ups (59%), diamonds, gold and related items (52.1%), machinery and mechanical devices (51.3%), and furniture, mattresses and bedding (52.3%).
In FY 2024–25, the trade volume between India and the US was recorded at $131.8 billion, with Indian exports accounting for $86.5 billion. Among the most affected categories are textiles and garments ($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 Sound the Alarm
Yogesh Gupta, Managing Director of Megaa Moda in Kolkata, pointed out that India’s shrimp exports are already struggling against competitors like Ecuador, which faces just a 15% tariff in the US.
“We are already facing intense competition from Ecuador, which pays only 15% duty. Indian shrimp already has a 2.49% anti-dumping duty and a 5.77% countervailing duty. With this new 25% hike, the total duty will become 33.26% from August 7,” Gupta said.
The Confederation of Indian Textile Industry (CITI) has voiced “deep concern” about the new developments. “The US tariff hike on August 6 is a major blow to India’s textile and apparel exporters. It has made an already difficult situation worse and will severely reduce our ability to compete against other countries for market share in the US,” the association said.
Likewise, Colin Shah, Managing Director of Kama Jewelry, noted, “Several export orders have already been paused as buyers reconsider sourcing plans due to higher overall costs. For a majority of MSME-driven sectors, absorbing this abrupt cost increase is not feasible. Profit margins are already slim, and this additional impact could cause exporters to lose long-time clients.”
