New Delhi — India’s export sector faces a major blow after the United States imposed a steep 50 per cent tariff on Indian goods, a move exporters fear will cripple industries and trigger massive job losses.
The penalty effectively doubles the existing 25 per cent duty by adding an additional 25 per cent levy on Indian imports. Shrimp, apparel, leather, and gems and jewellery sectors heavily dependent on the US market are expected to be the worst hit.
The US is India’s largest export destination, accounting for nearly 20 per cent of the country’s $437.42 billion in goods exports in 2024–25. Bilateral trade in goods reached $131.8 billion during the same period, with India exporting $86.5 billion and importing $45.3 billion.
Exporters fear the fallout could devastate labour-intensive sectors. “The 50 per cent tariff is like an economic sanction. It would lead to closure of units and job cuts,” said a leather industry exporter.
The apparel industry, which shipped $10.3 billion worth of goods last year, has been hit particularly hard. The Apparel Export Promotion Council (AEPC) said Indian apparel has effectively been priced out of the US market, widening the tariff disadvantage to 30–31 per cent compared to rivals such as Bangladesh, Vietnam, and Sri Lanka.
The Gems and Jewellery Export Promotion Council (GJEPC) issued a stark warning as well. “With this tariff hike, the entire industry may come to a standstill, from karigars (artisans) to large manufacturers,” said GJEPC Chairman Kirit Bhansali, adding that competing hubs like Turkiye, Vietnam, and Thailand will gain at India’s expense.
Seafood exporters echoed similar fears. A Kolkata-based trader said Indian shrimp, already weighed down 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 reported that American buyers are already demanding discounts of up to 20 per cent, while fresh orders are being delayed or cancelled. Many firms warned that if conditions persist, they may be forced to cut up to half of their workforce.
Industry bodies have urged urgent diplomatic talks to avert long-term erosion of India’s US market share, cautioning that without corrective measures, the country risks losing its hard-won position as a key global supplier.
