The Trump tariff has dealt a major blow to India’s trade. From Wednesday, almost two-thirds of Indian exports to the US, worth over $60 billion, will face steep new duties. Washington says the step is linked to India’s oil and defence ties with Russia. Experts warn the tariff could make Indian goods costlier, cut into exporters’ profits, and threaten jobs. Sectors such as jewellery, textiles, food, and handicrafts are expected to feel the biggest impact, raising concerns for Indian businesses in global markets.
Trump Tariff Impact
Gems and Jewellery
Among the worst hit is the gems and jewellery sector, with annual exports of around $10 billion to the US. With nearly 40 percent of its overseas sales dependent on American buyers, higher Trump tariff rates now crossing 50 percent pose a direct threat to jobs in hubs such as Surat, Mumbai, and Jaipur.
Agriculture and Food
Farm products such as basmati rice, tea, spices, and processed foods worth close to $6 billion are also vulnerable. The higher Trump tariff could push US buyers towards cheaper suppliers in Pakistan, Vietnam, and Thailand, leaving farmers in Punjab, Haryana, and Kerala exposed to falling prices.
Textiles
Indian textile exports to the US were valued at $10.8 billion in FY2025. With tariffs climbing beyond 60 percent, clusters in Noida and Bengaluru face shrinking orders, while competitors in Bangladesh and Mexico stand to benefit.
Leather and Footwear
Shipments worth $1.2 billion from Agra, Kanpur, and Tamil Nadu’s Ambur region are now under pressure. The Trump tariff has left the sector vulnerable to rivals in Vietnam and Indonesia.
Carpets and Handicrafts
Exports of carpets and handicrafts, heavily dependent on US markets, are equally at risk. From Bhadohi and Mirzapur to Jodhpur, small workshops fear closures as rising costs drive buyers to Turkey, China, and Nepal.
