AUGUST 27, 2025
Trump has imposed 50 per cent tariffs on Indian imports going to the US.
Indian exports to the United States are now subject to 50 per cent tariffs, with the additional 25 per cent duties imposed by President Donald Trump as “penalty” for New Delhi’s Russian oil purchase taking effect from Wednesday, leaving some sectors exposed to a hard hit.
Some sectors of India’s export ecosystem have long relied on the US as their largest overseas market. While critical sectors like smartphones, pharmaceuticals, and energy have been spared, others — particularly gems and jewellery, textiles, auto parts, and seafood — are facing a significant blow.
Sectors hit the most by Trump’s India tariffs
Gems and jewellery: The US is the largest buyer of Indian gems and jewellery, accounting for nearly 30 per cent of the sector’s global sales. With $10 billion – roughly ₹87,600 crore – in exports last year alone, this sector is staring at serious disruption due to Trump’s tariffs.
Surat, the global hub for diamond polishing, is already feeling the heat with US orders slowing sharply, a Reuters report mentioned.
Small exporters are left with few options, while larger players are exploring shifting operations to countries with lower US tariffs like Botswana, which faces only 15 per cent duty, as per the report.
Shrimp and seafood: India exported $2.6 billion ( ₹22,800 crore) worth of seafood to the US last year, according to data mentioned in the Reuters report, which added that shrimp made up 40 per cent of that.
Major US clients reportedly include Walmart and Kroger.
Exporters say new tariffs have led to a pause in orders, and some shrimp farmers are considering quitting the trade altogether.
Textiles and apparel: India exported over $2 billion in textiles and garments to the US in 2024, with $1 billion more in the first half of 2025. Major apparel and textile exporters include Shahi Exports, Welspun, Indo Count Industries, Trident and Gokaldas Exports. The major clients include Walmart, Target, Costco and Gap.
Auto components: The US is the top export market for Indian auto components, with $6.6 billion ( ₹58,000 crore) worth exported in 2024.
Car and small truck parts worth $3.5 billion ( ₹30,738 crore) will face 25 per cent tariffs. Larger vehicle components (used in trucks and farm equipment), worth another $3 billion ( ₹26,355 crore), are now hit with the full 50 per cent tariff.
Big exporters like Bharat Forge, Sona Comstar, and Motherson are likely to feel the pinch.
Who’s been spared the tariff hit for now
Smartphones and electronics (win for Apple): Despite the tariff storm, smartphones and electronics have been spared. India exported nearly $7 billion (roughly ₹61,495 crore) worth of devices in 2024, mostly from Apple’s manufacturing partners — Tata Electronics, Foxconn, Wistron, and Pegatron, as per the Reuters report. Apple now makes a majority of US-bound iPhones in India and is set to launch a new model, the iPhone 17, next month.
Pharmaceuticals: The US is heavily dependent on affordable generic drugs from India, something that has reflected in the Trump tariffs.
Indian drugmakers exported $3.6 billion (roughly ₹31,626 crore) worth of pharmaceuticals to the US in 2024, and $3.7 billion (roughly ₹32,505 crore) more in the first half of 2025. Major players like Dr Reddy’s, Sun Pharma, Lupin, and Aurobindo are safe, for now.
Renewable energy: Solar cells, wind turbines, and related equipment also fall under Tariff exemptions. Exporters like Reliance, Adani’s Mundra Solar, Waaree, LM Wind Power, and Schneider Electric continue to ship to the US without disruption.
How India responded to ‘Russian oil’ logic
India sees the Trump tariffs as US “targeting” the country for Russian oil imports. In a statement on August 7, India said, “We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”
“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” a statement by the Ministry of External Affairs said.
India had previously labelled Trump’s threats against it as “unjustified and unreasonable” and accused the US and European Union of unfairly targeting New Delhi for its trade with Russia.
Courtesy/Source: Hindustan Times / PTI
