The United States’ 50 percent tariff on Indian goods came into effect at 12:01 am EDT (9:31 am IST) today. This follows an earlier 25 per cent duty imposed on August 7, doubling the total tariff. The US Department of Homeland Security confirmed the higher duty applies to all Indian goods “entered for consumption or withdrawn from warehouse for consumption” from this time onward.

Trump targets countries trading with Russia

This move is part of President Donald Trump’s strategy against nations maintaining economic ties with Russia. India was specifically targeted for buying Russian crude oil and military equipment. New Delhi has strongly criticised the decision, while Moscow has backed India’s right to choose trade partners.

Sector-wise impact

  • Textiles and Apparel: US imports worth USD 10.8 billion now face nearly 64% duties, hitting hubs like Tiruppur.

  • Gems and Jewellery: USD 9.94 billion in exports, mostly from Surat, face 52.1% duties.

  • Shrimp and Seafood: USD 2.4 billion exports face 60% tariffs, giving Ecuador an edge.

  • Carpets, Furniture, Home Textiles: Exports worth USD 1.2 billion now face nearly 53% duties.

  • Leather and Footwear: Entire sector subject to 50% tariff, affecting states like UP and Tamil Nadu.

  • Auto Components & Chemicals: Major parts of USD 6.6 billion and USD 2.7 billion exports face steep duties.

  • Agricultural Products: USD 6 billion worth of basmati, tea, spices now face 50% duties.

Sectors exempted

  • Pharmaceuticals: USD 10.52 billion generic drug exports remain exempt.

  • Electronics: USD 14.64 billion in electronics, including iPhones, are excluded.

  • Petroleum & Others: USD 4.1 billion in petroleum products, plus books, plastics, and some industrial inputs, remain unaffected.

MSMEs hit hard

Small and medium-sized enterprises (SMEs) contribute over 70% of exports in textiles, gems, seafood, and chemicals. Concentrated in clusters like Tiruppur, Surat, and Panipat, these firms work on thin margins. The 50% duty threatens their price competitiveness, risking job losses and production cuts.

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