Trump Tariffs Hit India From Today

27th August 2025

From today 27 August 2025 the U.S. under President Trump, doubled tariffs on many Indian exports—from 25% to 50%. The move is a punitive response to India's continued import of discounted Russian oil, which the U.S. claims indirectly supports Russia's war in Ukraine.

The tariffs affect around two-thirds of India's exports to the U.S., potentially impacting $48-$60 billion worth of goods

Labour-intensive sectors—textiles, gems & jewellery, seafood, leather, furniture, chemicals, auto components, handicrafts and carpets are the hardest hit.

Think tanks warn of export collapses of up to 70% in some categories, threatening hundreds of thousands of jobs in key export hubs like Surat (gems), Andhra Pradesh (shrimp), and Tiruppur (textiles).

The Indian rupee has hit multi-week lows, while stock markets like the Sensex and Nifty posted sharp declines.

Diplomatic ties between the U.S. and India—long seen as strategic partners—have entered a notable downturn, marking one of the most serious crises in recent history.

The situation risks pushing India closer to Russia and China.

The Indian government plans provide financial assistance to impacted exporters.

It will also encourage diversification of markets, targeting regions such as the Middle East, Latin America.

Prime Minister Modi unveiled tax relief measures—including GST simplification and income tax cuts—to support domestic industries.