Trump’s 50% Tariffs: India Faces a Severe Trade Shock

Tariff Announcement

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Scope & Scale

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Sectors Hit Hardest

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Economic Fallout

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Economic & Market Response

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Long-Term Play & Strategy

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Trump’s 50% Tariffs: India Faces a Severe Trade Shock

Tariff Announcement

US imposes additional 25% tariffs on Indian goods—total duties now 50%, effective August 27, 2025.

Scope & Scale

Around 66% of India’s exports to the US—worth US$60B—will now face steep levies.

Sectors Hit Hardest

Textiles, gems & jewellery, shrimp, carpets, furniture and more face collapse. MSMEs hardest hit.

Economic Fallout

Exports may fall from US$86B to US$50B by 2026—jobs and GDP growth at risk.

Economic & Market Response

Rupee slips; RBI pledges support. Exporters urged to target other markets.

Long-Term Play & Strategy

India must diversify trade, strengthen ties outside US, and bolster domestic resilience.