Effective August 27, 2025, India’s exporters face up to 50% tariffs on $48.2 billion worth of goods shipped to the United States, its largest export market.
This dramatic escalation in US duties is among the steepest imposed on any trading partner, directly impacting over 55% of India’s exports to the US, while threatening key sectors such as textiles, gems and jewelry, seafood, and MSMEs. Experts warn this tariff escalation could reduce India’s GDP growth by up to 0.5-0.6% in the current fiscal year, revealing the broad economic fallout from these trade disruptions.
Understanding the tariff regime and sectoral impact
The tariff hike represents a doubling from a prior 25% to a combined 50%, levied on nearly seven thousand Indian product lines. This surpasses rates applied to other major exporters like China (30%) and Vietnam (20%), placing Indian exporters at a significant disadvantage.
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