New Delhi — India’s labour-intensive export sectors are staring at massive disruption after the United States imposed steep 50 per cent tariffs on Indian goods, exporters warned on Wednesday.
The move — which effectively doubles the existing 25 per cent duty by adding an additional 25 per cent penalty on Indian imports — is set to hit key industries including shrimp, apparel, leather, and gems and jewellery, all of which rely heavily on the American market.
The US is India’s largest export destination, accounting for around 20 per cent of the country’s $437.42 billion worth of goods exports in 2024–25. Bilateral trade in goods stood at $131.8 billion during the same period, with India exporting $86.5 billion worth of goods and importing $45.3 billion.
Industry leaders fear the tariffs could trigger widespread job losses and closures of export units. “The 50 per cent tariff is like an economic sanction. It would lead to closure of units and job cuts,” said an exporter from the leather sector.
The Apparel Export Promotion Council (AEPC) said the textile industry, which shipped goods worth $10.3 billion last year, has been dealt a severe blow. Secretary General Mithileshwar Thakur said the additional levy had effectively priced Indian apparel out of the US market, widening the tariff disadvantage to 30–31 per cent compared to competitors like Bangladesh, Vietnam, and Sri Lanka.
The Gems and Jewellery Export Promotion Council (GJEPC) also sounded alarm, noting that half of India’s polished diamond exports are US-bound. “With this tariff hike, the entire industry may come to a standstill, from karigars (artisans) to large manufacturers,” said GJEPC Chairman Kirit Bhansali. Competing hubs such as Turkiye, Vietnam, and Thailand, he warned, will gain at India’s expense.
Seafood exporters expressed similar concerns. A Kolkata-based trader said Indian shrimp, already burdened by anti-dumping and countervailing duties, will now become “super expensive” in the US compared to Ecuador, which faces only a 15 per cent levy.
Leather exporters cautioned that American buyers are already demanding discounts of up to 20 per cent, with new orders being cancelled or put on hold. Many firms expect workforce retrenchments of up to 50 per cent if the situation persists.
Trade bodies have urged urgent diplomatic intervention to prevent long-term erosion of India’s market share in the US, warning that without corrective measures, India’s hard-won position as a key global supplier could collapse.
