Sign in Subscribe
Exports

Trump's 50% Tariffs on India Impacting Economy, Export Sectors Negatively, Experts Say

Strategic Insights

— 2 min read

Indian exports to the US, valued at $86.5 billion in 2024-25, will suffer due to the imposition of a 50% tariff on Indian goods after the US President Donald Trump's decision to impose an additional 25% duty on Indian exports. The move is aimed at pressuring India to reduce its crude oil imports from Russia, citing its impact on the US economy. The impact will be felt on various sectors, including textiles, marine, and leather export sectors.

Key Takeaways:

  • The additional 25% tariff, along with the existing 25% duty, results in a combined tariff of 50% on Indian exports to the US, impacting various sectors such as textiles, marine, and leather.
  • The Federation of Indian Export Organisations (FIEO) DG Ajay Sahai states that it will impact India's 55% of exports to the US.
  • A Prasanna, Chief economist, ICICI Securities Primary Dealership, notes that the additional tariffs will come into effect after 21 days, and the total 50% rate will be a big negative for Indian exports.
  • Agriculture minister at a press conference, stating that India will take all actions necessary to protect its national interests in response to the US decision.
  • Indian government is yet to issue a statement on the proposal to offer substitution products for petroleum products in the US.
  • Experts believe that the move is a pressure tactic by Trump to influence India's position regarding the proposed India-US trade deal.
  • The United States seeks reduced duties on various products, including industrial goods, automobiles, wines, petrochemicals, agricultural products, dairy items, apples, tree nuts, and genetically-modified crops.
  • The trade statistics for 2024-25 indicate that bilateral trade between India and the US reached $131.8 billion, consisting of $86.5 billion in exports and $45.3 billion in imports.

Statistics:

  • India-US bilateral trade for 2024-25 reached $131.8 billion.
  • $86.5 billion of the $131.8 billion is attributed to India's exports to the US.
  • $5.3 billion of the $131.8 billion is attributed to India's imports from the US.
  • The additional 25% tariff by President Trump will impact India's 55% of exports to the US.
  • The Indian government's statement on the 50% tariffs imposed by Trump will impact the domestic exports industry's growth.

Sources:

  • [1](https://timesofindia.indiatimes.com/business/india-business/trump-imposes-25-additional-tariff-on-india-over-russia-oil-exports/articleshow/94650871.cms) Times of India: "Trump imposes 25% additional tariff on India over Russia oil exports"
  • [2](https://timesofindia.indiatimes.com/business/india-business/india-reacts-strongly-to-trumps-25-additional-tariff-for-buying-russian-oil-will-take-all-actions/articleshow/94649015.cms) Times of India: "India reacts strongly to Trump's 25% additional tariff for buying Russian oil"

Read more