US tariffs on India: Impact on economy, exports, and relations
The US has slapped 50% tariffs on Indian goods—plus a 25% penalty on Russian oil imports—which could cost India up to $60 billion, according to Jefferies.
Sectors like textiles, footwear, jewelry, and gems are expected to feel the pinch most.
This move follows India's rejection of US mediation in a recent India-Pakistan conflict.
Potential GDP growth impact and textile export concerns
These tariffs could shave about one percentage point off India's GDP growth and significantly impact textile exports, putting many small exporters' jobs at risk.
While services exports aren't affected, the pressure is real for goods-based businesses.
To cushion the blow, India may roll out GST reforms and tax cuts.
The dispute also signals rising tensions between the US and India—and could push India closer to China for trade.