US Tariffs On India: Will Trump’s Trade War Trigger A Ripple Effect? | India News
US President Donald Trump’s announcement of 25 percent additional tariffs on previous Indian goods on August 6 will officially enter into force. On Tuesday, the US Department of Homeland Security issued a notification that confirms that India will not relieve any relief from these tariffs.
The movement comes in response to the ongoing oil trade with Russia, which India claims to indirectly fuel Russia’s military operations in Ukraine. This followed a 25 percent tariff imposed on trade imbalance, and brought the total tariff burden in Indian exports to 50 percent. In today’s DNA section, Zee News’s executive editor Rahul Sinha analyzed the effects of US tariffs on India:
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#Dnawithrahulsinha | ट्रंप क 50% टैरिफ..कल से लागू हो हो हो हो टैरिफ टैरिफ से से सस्ता सस्ता सस्ता सस्ता सस्ता से
50 % टैरिफ के ‘असर’ का सरल विश्लेषण #DNA #Unitedstates #Donaldtrump #Usttariff #Tariffwar @Rahulsinhatv pic.twitter.com/azcswy1pyh– Zee News (@zeenews) 26 August 2025
It affects the clothing industry
India’s RS exporting garment sector. The goods worth 83,000 Crore per year are among the most difficult hits. The tax rate on clothes increased from 13.9 percent to 63.9 percent and led to a 50-70 percent decrease in exports and caused potentially losses up to RS. 60,000 crore.
Price comparisons with competitors reveal the challenge: RS cost. 1500 from India will face a challenging competition from similar products with RS priced. 1300 (China), rs. 1200 (Bangladesh) and rs. 1145 (Vietnam). As a result, the US demand for Indian clothing is expected to fell sharply and it is expected to threaten 34 percent of India, which is currently affiliated to the USA.
Tamil Nadu, a major export center in TIRUPPUR, can be seen already:
– Orders are waiting
– Machines are empty
– 250 new workers were burned
– Thousands of work can be at risk in the coming months
Did the jewelery sector canceled orders?
India’s jewelery exports, which value $ 10 billion (83,000 Crore) per year, are subject to a tariff of 52.1 percent from 2.1 percent per year to the United States. In conclusion:
– Exports are expected to decrease by 50 percent
– Estimated losses vary between RS. 50.000-60.000 CRORE
Shrimp exports were shot with 60 percent tax
Trump’s tariffs also evaluated India’s seafood sector, especially shrimp exports in RS. 16,000 crore. Lock Points:
Previously, shrimp exports are now facing 50 percent tariff + 10 percent.
– This is the sum of 60 percent of the tasks
– Export decrease is estimated to be 60 percent and approximately RS loss. 8,300 CRORE
Approximately 5 Lakh farmers and 25 Lakh others will be directly or indirectly affected. Production fell from 100 million to 60-70 million. Farmers are planning to switch to alternative agriculture.
Other affected industries
A few other industries face significant setbacks due to 50 percent tariff:
Industry and Estimated Loss
Chemicals and organics. 74,000 CRORE
Machinery and Engineering. 24,900 CRORE
Furniture. 9,000 CRORE
Leather and shoes. 8,300 CRORE
The chemical sector, which employs 20 Lakh people, sees that large export orders are waiting.
No tariffs in strategic sectors
Trump’s management excluded some key sectors from the tariff hike:
1- Pharmaceuticals- USA, India’s low-cost generic
2- IT Services- Very important for US technology supply chain
3- Smartphones- Apple made an investment agreement of $ 100 billion with the USA
4- Energy and petroleum products- National security and green technology
