As of 27 August, the U.S. enforced a steep 50% tariff on several Indian goods, deepening the trade shock.
Sectors like textiles, gems, jewelry, footwear, furniture, and chemicals are among the hardest hit.
India’s trade with the U.S.—worth around $48.2 billion—now faces serious viability concerns.
The policy move stems from India’s continued imports of Russian oil, which the U.S. views as indirectly funding conflict.
India denounced the tariffs as “unfair, unjustified and unreasonable” while resisting pressure to change its oil policy.
Prime Minister Modi emphasized support for farmers and small businesses and advocated for “Made in India” self-reliance.
The move triggered alarm over potential job losses, industrial disruption, and export-led recovery setbacks.
Analysts estimate annual export impact ranging from $25–50 billion, with GDP hits of 0.2–0.9%.
India is preparing countermeasures—GST cuts, RBI support, and pursuing new trade partnerships b
eyond the U.S.
Economic experts warn that labor-intensive exporters may bear the brunt unless reforms and diversification acc
elerate.