Trump will impose a 50% tariff on India from today. How much will be the loss? What is the Modi government's plan?

Posted on 27th Aug 2025 by rohit kumar

Even after the announcement of imposing a 50 percent duty on India, the government will have to pay the price for not bowing down to the US conditions from Wednesday. From August 27, a 50 percent duty will be imposed on goods exported from India to America, which is the highest compared to other countries.

 

Currently, this duty is 25 percent. Apart from this, duties imposed before the reciprocal duty will also be imposed. For example, before April, only 2.9 percent duty was levied on carpet export in the US market, which will now become 52.9 percent.

 

Indian goods will become expensive

 

Due to this huge increase in duty, Indian goods will become very expensive in the US market, and this will affect India's export of 30-35 billion dollars. Mainly, the export of marine products, especially shrimp, organic chemicals, apparel, textile made-ups, diamond and gold jewelry, machinery and mechanical equipment, furniture, and items like beds will be affected.

 

Export of pharma, smartphones, and other electronic and petroleum products has been kept free from 50 percent duty. America wants to make the Indian market completely duty free in sectors like agriculture, dairy, and fisheries.

 

GTRI report

The Global Trade Research Initiative (GTRI) has said that this decision of America can put a large number of jobs at risk. In the last financial year 2024-25, India exported $86 billion to the US.

 

GTRI estimates that this could lead to a decline of up to 43 percent in total exports. According to S.C. Ralhan, President of Federation of Indian Export Organizations (FIO), due to the heavy duty of America, production has started being reduced in export units in places like Noida, Surat, Tirupur, which will affect employment.

 

America cancels the meeting

Crisil has also expressed apprehension of a decline in garment exports in its report. India's largest export market is America, where Indian exports have been increasing continuously for the last four years.

 

Talks on the Bilateral Trade Agreement (BTA) between India and the US began in April this year, and both countries were hoping to complete the first phase of the BTA by October this year. Several rounds of meetings had also been held regarding the BTA and the US delegation was to come to Delhi for the next phase of the meeting from August 25, which was canceled by the US.

 

However, Indian Prime Minister Narendra Modi has made it clear that there will be no compromise on the interests of farmers, fishermen, and small entrepreneurs, and this is paramount for the government. The government is taking several steps to compensate for the affected exports to the US. Soon, a relief package like the Export Promotion Mission may be announced for exporters.

 

PM Modi held a meeting

 

On Tuesday, the impact of the 50 percent duty imposed in the US from Wednesday and the future strategy were discussed in the Prime Minister's Office. It is being told that Finance Minister Nirmala Sitharaman and Commerce and Industry Minister Piyush Goyal were also present in this meeting.

 

According to the US Homeland Security Department, only 25 percent duty will be levied on goods shipped before 12 midnight on August 26 and reaching the US market before September 17. India's main competition in the US market is from countries like China, Vietnam, Mexico, Bangladesh, and Indonesia.

 

Exports are most affected after a 50% duty, and the total duty levied on them

Shrimp - 60 percent

Carpet - 52.9 percent

Apparel knitted - 63.9 percent

Apparel woven - 60.3 percent

Textile made up - 59 percent

Diamond and gold items - 52.1 percent

Machinery - 51.3 percent

Furniture and beds - 52.3 percent