US tariffs on Indian imports: What it means for India

Business Aug 27, 2025

The US just slapped 50% tariffs on about two-thirds of Indian exports (worth $60 billion a year), starting in 2025.
This move is the latest in a trade spat, with the US aiming to pressure India over its continued purchases of Russian oil and defense gear.

Sectors that will be hit hardest

These new tariffs hit hardest where it hurts most—jobs. Sectors like textiles, gems and jewelry, leather goods, and seafood could see exports to the US drop by up to 70%, putting hundreds of thousands of jobs at risk in places like Surat and Tiruppur.
With textile tariffs now close to 64%, countries like Bangladesh, Vietnam, Mexico, and CAFTA-DR might snag India's market share.
There's a small silver lining: about 30% of Indian exports (like pharma and electronics) are spared for now.