{"id":1151,"date":"2025-08-28T04:18:42","date_gmt":"2025-08-28T04:18:42","guid":{"rendered":"https:\/\/newsraise.com\/in\/?p=1151"},"modified":"2025-08-28T04:18:42","modified_gmt":"2025-08-28T04:18:42","slug":"the-impact-of-trumps-50-tariff-on-india-begins-details-on-different-sectors","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2025\/08\/28\/the-impact-of-trumps-50-tariff-on-india-begins-details-on-different-sectors\/","title":{"rendered":"The Impact of Trump&#8217;s 50% Tariff on India Begins: Details on Different Sectors"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>&#8216;Trade Tariff&#8217; &#8211; these two words have become as regular as buying groceries from the market! Ever since Donald Trump took charge as the President of the United States, his agendas have been rather controversial &#8211; creating a storm across several countries. The impact of his ongoing march on &#8216;trade tariffs&#8217; &#8211; especially with an alleged friend such as &#8216;India&#8217;, has turned rather sour with time. The Ukraine-Russia war has created a direct impact on India bearing a 50% tariff charge &#8211; one of the highest across the world.<\/p>\n<p>Critical sectors like smartphones, pharma, energy have been spared so far, but crucial ones such as gems and jewellery, textiles, auto parts, seafood are amongst those that will henceforth face a significant blow. The Indian exports to the United States are now subject to 50 per cent tariffs, with the additional 25 per cent duties imposed by President\u00a0Donald Trump\u00a0as \u2018<em>penalty<\/em>\u2019 for New Delhi&#8217;s Russian oil purchase taking effect from Wednesday, leaving some sectors exposed to a hard hit.<\/p>\n<ul>\n<li>Some sectors of India&#8217;s export ecosystem have long relied on the US as their largest overseas market. While critical sectors like\u00a0smartphones, pharmaceuticals, and energy have been spared, others \u2014 particularly gems and jewellery, textiles, auto parts, and seafood \u2014 are facing a significant blow.<\/li>\n<\/ul>\n<h2><strong><u>Sectors Affected by Trump&#8217;s Tariffs<\/u><\/strong><\/h2>\n<h3><strong>Gems and Jewellery:\u00a0<\/strong>The US is the largest buyer of Indian gems and jewellery, accounting for nearly 30 per cent of the sector\u2019s global sales. With $10 billion \u2013 roughly\u00a0\u20b987,600 crore \u2013 in exports last year alone, this sector is staring at serious disruption due to Trump&#8217;s tariffs.<\/h3>\n<p>Surat, the global hub for diamond polishing, is already feeling the heat with US orders slowing sharply, a Reuters report mentioned. Small exporters are left with few options, while larger players are exploring shifting operations to countries with lower US tariffs like Botswana, which faces only 15 per cent duty, as per the report.<\/p>\n<h3><strong>Shrimp and Seafood:<\/strong>\u00a0India exported $2.6 billion (INR 22,800 crore) worth of seafood to the US last year, according to data mentioned in the Reuters report, which added that shrimp made up 40 per cent of that. Major US clients reportedly include Walmart and Kroger.<\/h3>\n<ul>\n<li>Exporters say new tariffs have led to a pause in orders, and some shrimp farmers are considering quitting the trade altogether.<\/li>\n<\/ul>\n<h3><strong>Textiles and Apparel:\u00a0<\/strong>India exported over $2 billion in\u00a0textiles\u00a0and garments to the US in 2024, with $1 billion more in the first half of 2025. Major apparel and textile exporters include Shahi Exports, Welspun, Indo Count Industries, Trident and Gokaldas Exports.<\/h3>\n<ul>\n<li>The major clients include Walmart, Target, Costco and Gap.<\/li>\n<\/ul>\n<p><strong>Auto Components:\u00a0<\/strong>The US is the top export market for Indian auto components, with $6.6 billion (INR 58,000 crore) worth exported in 2024. Car and small truck parts worth $3.5 billion (INR 30,738 crore) will face 25 per cent tariffs. Larger vehicle components (used in trucks and farm equipment), worth another $3 billion (INR 26,355 crore), are now hit with the full 50 per cent tariff.<\/p>\n<ul>\n<li>Big exporters like Bharat Forge, Sona Comstar, and Motherson are likely to feel the pinch.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1109 size-large\" src=\"https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/08\/PHILIP-1-1024x576.jpg\" alt=\"Narendra Modi, Donald Trump, India, US, Trade Tariff\" width=\"1024\" height=\"576\" srcset=\"https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/08\/PHILIP-1-1024x576.jpg 1024w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/08\/PHILIP-1-300x169.jpg 300w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/08\/PHILIP-1-768x432.jpg 768w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/08\/PHILIP-1.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<h2><strong><u>Sectors that are Spared Currently<\/u><\/strong><\/h2>\n<h3><\/h3>\n<h3><strong>Smartphones and Electronics: <\/strong>Despite the tariff storm, smartphones and electronics have been spared. India exported nearly $7 billion (roughly\u00a0INR 61,495 crore) worth of devices in 2024, mostly from\u00a0Apple\u2019s manufacturing partners\u00a0\u2014 Tata Electronics, Foxconn, Wistron, and Pegatron, as per the Reuters report. Apple now makes a majority of US-bound iPhones in India and is set to launch a new model, the iPhone 17, next month.<\/h3>\n<h3><strong>Pharmaceuticals:\u00a0<\/strong>The US is heavily dependent on affordable generic drugs from India, something that has reflected in the Trump tariffs. Major players like Dr Reddy\u2019s, Sun Pharma, Lupin, and Aurobindo are safe, for now.<\/h3>\n<h3><strong>Renewable Energy:\u00a0<\/strong>Solar cells, wind turbines, and related equipment also fall under Tariff exemptions. Exporters like\u00a0Reliance, Adani\u2019s Mundra Solar, LM Wind Power &amp; Schneider Electric continue to ship to the US without disruption.<\/h3>\n<p>&nbsp;<\/p>\n<p>The Indian government, headed by Prime Minister Narendra Modi and External Affairs Minister, S. Jaishankar have labelled Trump&#8217;s threats against it as &#8220;<em>unjustified and unreasonable<\/em>&#8221; and have accused the US and European Union of unfairly targeting New Delhi for its trade deals with Russia.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>&#8216;Trade Tariff&#8217; &#8211; these two words have become as regular as buying groceries from the market! Ever since Donald Trump took charge as the President&#8230;<\/p>\n","protected":false},"author":4,"featured_media":1152,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,299],"tags":[220,216,219,480,253,254],"class_list":["post-1151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-news","tag-donald-trump","tag-india","tag-narendra-modi","tag-s-jaishankar","tag-trade-tariff","tag-us","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=1151"}],"version-history":[{"count":2,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1151\/revisions"}],"predecessor-version":[{"id":1154,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1151\/revisions\/1154"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/1152"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=1151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=1151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=1151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}