FX.co ★ US Tariffs Impact USD 48.2 Billion of Indian Trade

The Indian government anticipates that the recently implemented 50% tariff by the United States will impact exports valued at USD 48.2 billion. Officials caution that these increased duties may render exports to the US economically unfeasible, potentially resulting in job losses and a deceleration in economic growth. To mitigate these effects, the government is formulating a multi-faceted approach, including reforms to the Goods and Services Tax (GST) to stimulate domestic demand. The 50% tariff, effective from Wednesday, August 27, is expected to most significantly affect exports in textiles, shrimp, leather, and gems and jewellery. As the US constitutes nearly 40% of India’s seafood exports, the shrimp industry faces considerable vulnerability. However, exports of pharmaceuticals, electronics, and petroleum products are not subject to the new duties. According to reports from The Economic Times, India exported goods valued at USD 86 billion to the US in the fiscal year 2025.