U.S. President Donald Trump’s announcement of a 25 p.c extra tariff on Indian items—made earlier on August 6—will formally come into impact. On Tuesday, the U.S. Division of Homeland Safety issued a notification, confirming that India would obtain no reduction from these tariffs.
The transfer is available in response to India’s continued oil commerce with Russia, which the U.S. claims is not directly fueling Russia’s army operations in Ukraine. This follows an earlier 25 p.c tariff imposed over commerce imbalance, bringing the full tariff burden on Indian exports to 50 p.c, efficient August 27. In right now’s DNA episode, Rahul Sinha, Managing Editor of Zee Information, analysed the results of US tariffs on India:
Watch DNA Episode Right here:
#DNAWithRahulSinha | ट्रंप का 50% टैरिफ..कल से लागू हो रहा है, 50% टैरिफ से क्या सस्ता, क्या महंगा?
50% टैरिफ के ‘असर’ का सरल विश्लेषण #DNA #UnitedStates #DonaldTrump #USTariff #TariffWar @RahulSinhaTV pic.twitter.com/AZCsWy1pyh
— Zee Information (@ZeeNews) August 26, 2025
Impacts On Garment Trade
India’s garment sector, which exports Rs. 83,000 crore price of products yearly to the U.S., is among the many hardest hit. The tax price on clothes has jumped from 13.9 p.c to 63.9 p.c, resulting in an anticipated 50-70 p.c drop in exports, doubtlessly inflicting losses of as much as Rs. 60,000 crore.
Worth comparisons with rivals reveal the problem: A t-shirt costing Rs. 1500 from India will face powerful competitors from comparable merchandise priced at Rs. 1300 (China), Rs. 1200 (Bangladesh), and Rs. 1145 (Vietnam). In consequence, U.S. demand for Indian clothes is projected to fall sharply, threatening 34 p.c of India’s world garment exports, that are at present U.S.-bound.
In Tiruppur, Tamil Nadu, a serious export hub, the affect is already seen:
– Orders are on maintain
– Machines are idle
– 250 new employees have been sidelined
– Hundreds of jobs could also be in danger within the coming months
Jewelry Sector Sees Orders Cancelled?
India’s jewelry exports, valued at 10 billion {dollars} (Rs. 83,000 crore) yearly to the U.S., at the moment are topic to a 52.1 p.c tariff, up from simply 2.1 p.c. In consequence:
– Exports are anticipated to drop by 50 p.c
– Estimated losses vary between Rs. 50,000–60,000 crore
Shrimp Exports Hit with 60 P.c Tax
Trump’s tariffs have additionally struck India’s seafood sector, notably shrimp exports, valued at Rs. 16,000 crore. Key factors:
Beforehand untaxed, shrimp exports now face a 50 p.c tariff + 10 p.c countervailing obligation
– This totals 60 p.c in duties
– Export decline estimated at 60 p.c, with losses of round Rs. 8,300 crore
Round 5 lakh farmers and 25 lakh others might be instantly or not directly affected. Manufacturing has fallen from 100 million to 60–70 million models. Farmers are contemplating shifting to various agriculture.
Different Affected Industries
A number of different industries face important setbacks because of the 50 p.c tariff:
Trade And Estimated Loss
Chemical substances and Organics- Rs. 74,000 crore
Equipment and Engineering- Rs. 24,900 crore
Furnishings- Rs. 9,000 crore
Leather-based and Footwear- Rs. 8,300 crore
The chemical sector, using 20 lakh folks, is seeing main export orders placed on maintain.
No Tariff on Strategic Sectors
Trump’s administration excluded sure key sectors from the tariff hike, together with:
1- Prescribed drugs – U.S. is dependent upon India’s low-cost generics
2- IT Providers – Essential for U.S. tech provide chain
3- Smartphones – Apple struck a 100 billion {dollars} funding cope with the U.S.
4- Vitality and Petroleum Merchandise – Tied to nationwide safety and inexperienced tech