India's Textiles, Gems and Jewellery, Leather goods, Food, and Automobiles will be hit hard by 50% US taxes
28-Aug-2025.
After Trump 50% Tariffs imposed on items the most sectors to suffer India would be labour-intensive sectors such as textiles, gems and jewellery, leather goods, food, and automobiles will be hit hardest with the Trump tariffs.
The apparel industry, the domestic readymade garment (RMG) industry's revenue growth is expected to slow to 3-5% this fiscal year, following the US's imposition of a 50% duty on India's exports to its economy.
But the tariffs will hit some firms more, especially the ones that post over 40% of their revenue from the US.
According to the Confederation of Indian Textile Industry (CITI), “The August 6 US Tariff announcement is a huge setback for India's textile and apparel exporters as it has further complicated the challenging situation we were already grappling with and will significantly weaken our ability to compete effectively vis-à-vis many other countries for a larger share of the US market”.
Jewels and gems
The Jewellery industry had previously raised alarm over Trump's 25% reciprocal tariff announcement, hinting at over 1 lakh job losses.
Chairman of the All-India Gem and Jewellery Domestic Council said, “The handmade jewellery exports could be hit hard. These products may no longer be accepted or sold there,” Rajesh Rokde.
Rokde added, "Previously, when there was a 10 per cent tariff, around 50 thousand people were suspected to be unemployed. If the same pattern follows with the new tariff hike, more than one lakh people could be impacted this time. Such an outcome would be very unfortunate for the jewellery industry".
Meanwhile, amid Trump tariffs and weak Chinese demand, the Surat Diamond Bourse is experiencing a two-decade low in export demand. Some exporters are even considering relocating to lower-tariff countries like Botswana.
Shrimps to become expensive
Yogesh Gupta, MD of Megaa Moda, a Kolkata-based seafood exporter India's shrimp is expected to become expensive in the US market following the tariffs.
“We are already facing huge competition from Ecuador as it has only 15 per cent tariff. Indian shrimp already attracts a 2.49 per cent anti-dumping duty and a 5.77 per cent countervailing duty. After this 25 per cent, the duty will be 33.26 per cent from August 7,” Gupta said.
Products facing high duties
Carpets 52.9%, Organic chemicals 54%, Apparel, knitted 63.9%, apparel — woven 60.3%, Textiles, made-ups 59%, Diamonds, gold and products 52.1%, Machinery and mechanical appliances 51.3%.
Exports will suffer
The tariffs could affect exports valued at $48.2 billion, according to estimates. Officials have cautioned that the new duties might make shipments to the US commercially unfeasible, potentially leading to job losses and slower economic growth.
Colin Shah, MD, Kama Jewellery said, these tariffs represent a significant setback for Indian exports with nearly 55% of India's shipments to the US market directly affected.
He added, ‘’The 50 per cent reciprocal tariff effectively imposes a cost burden, placing our exporters at a 30–35 per cent competitive disadvantage compared to peers from countries with lesser reciprocal tariffs”.
He said, “Many export orders have already been put on hold as buyers reassess sourcing decisions in light of higher landed costs. For a large number of MSME-led sectors, absorbing this sudden cost escalation is simply not viable. Margins are already thin, and this additional blow could force exporters to lose long-standing clients”. Shah further said.
