Trump’s 50% Tariffs Hit Indian Exports, Labour-Intensive Industries Face The Biggest Blow

New Delhi: The United States has started imposing steep 50 per cent tariffs on Indian goods from Wednesday. This move will mainly hurt labour-intensive sectors like textiles, gems and jewellery, shrimps, carpets, furniture, and handicrafts, which depend heavily on the US market.

Trade experts warn India’s overall exports to the US could fall by 40–45 per cent in 2025-26 compared to last year. The Global Trade Research Initiative (GTRI) estimates Indian exports to America could shrink to around USD 49.6 billion from nearly USD 87 billion in 2024-25.

Textiles and Apparel Industry in Trouble

The textile and apparel sector, which sends nearly one-third of its exports to the US, is expected to suffer badly. High tariffs will make Indian products more expensive and less competitive compared to rivals from Vietnam, Bangladesh, and Cambodia. Industry leaders have asked the government for immediate cash support and a temporary pause on loan repayments to prevent widespread job losses.

Gems and Jewellery Sector Feels the Heat

India’s gems and jewellery exporters are also under pressure. The US is their single largest market, accounting for about USD 10 billion in sales — nearly 30 percent of the sector’s global trade. With the 50 per cent tariffs in place, Indian jewellery may become too costly for American buyers, threatening thousands of jobs in polishing and manufacturing units. Exporters have urged the government to launch a special scheme to cover part of these extra costs.

Shrimp and Marine Exports at Risk

Shrimp exporters, who earn almost half of their revenue from the US, are bracing for steep losses. A 50 per cent tariff will cut into profits, and exports could fall sharply. Since shrimp farming and processing employ thousands of semi-skilled workers, experts fear large-scale job losses in coastal states.

Home Textiles, Carpets and Furniture

Home textiles, carpets, and furniture are also vulnerable. These industries earn 60–70 per cent of their revenue from exports, with the US being the biggest buyer. Crisil Ratings recently warned that demand for such products may also shrink due to falling consumer spending in the US, adding to the pain for Indian exporters.

Competitors Gain an Edge

With Indian products becoming expensive, countries like Vietnam, Bangladesh, Pakistan, and even China are expected to benefit. Their exporters currently face lower tariffs, which will make their goods more attractive to American buyers.

Some Products Still Safe

Not all exports are affected. About 30 per cent of India’s shipments — such as pharmaceuticals, electronics, and petroleum products — remain duty free. However, even these sectors face uncertainty, as President Trump has threatened further hikes if companies don’t shift production to the US.

The Bigger Picture

The US buys 20 per cent of India’s total exports, making it one of the most important trade partners. Experts say the 50 per cent tariffs could push some industries to the brink, especially those relying on low wages and high export volumes. The fear is not just about lost revenues, but also the thousands of jobs at stake in India’s textile mills, jewellery workshops, shrimp farms, and carpet-making hubs.