US Hikes Tariff to 50%, Indian Exports of Leather, Textiles, Gems, Shrimp Set to Take Major Hit

In a move that could severely impact India’s export-driven sectors, the United States has imposed an additional 25% tariff on a range of Indian goods, bringing the total duty to 50%. The measure, announced by President Donald Trump on Wednesday, is being described as a retaliatory step against India’s continued imports of Russian oil.

Key sectors expected to be hit hard include leather, footwear, textiles, gems and jewellery, and shrimp—industries that form a major portion of India’s export basket to the US. Industry experts warn that the sharp tariff hike could lead to substantial order cancellations, rising inventory, and potential job losses across MSMEs and export hubs.

“This tariff hike could cause a cascading effect on India’s export competitiveness. Sectors like gems and jewellery, which heavily rely on the US market, may see a 30-40% decline in shipments in the coming quarters,” said an official from a leading trade association.

Interestingly, the additional tariff has been targeted solely at India. Other nations importing Russian oil, such as China and Turkey, have not faced similar trade penalties, sparking criticism over selective enforcement and questions of geopolitical motivation behind the move.

Indian exporters are calling for urgent intervention by the government to seek diplomatic redressal and explore trade relief measures. Officials in the Commerce Ministry have reportedly begun internal consultations to assess the impact and prepare a formal response.

With the festive season in the US approaching and Indian exporters typically ramping up shipments during this period, the timing of the tariff hike could not have been worse. Many exporters fear losing ground to competitors in Southeast Asia and Latin America.

The development marks a significant escalation in trade tensions and may also affect broader India-US economic relations in the months ahead.