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News Topical, Digital Desk : America has increased the tariff on goods coming from India to 50%. This increased tariff has come into effect from Wednesday i.e. 27 August 2025 and it is going to have a deep impact on Indian exporters.
From clothes, jewellery, shrimp to auto parts, problems will increase in America. But smartphones, medicines and energy related goods have been exempted from this tariff.
Complete horoscope of Indian exports in US market
America is India's largest export market, where goods worth billions of dollars go every year. But now due to President Donald Trump's trade policy, the path of Indian exporters is becoming difficult. Especially those sectors which are highly dependent on America, such as jewelry, clothing and shrimp are now facing a big crisis. Let us look at these sectors one by one.
Tariffs hit jewelry and diamonds
The biggest market for Indian jewellery and diamonds is the US. Last year, jewellery and diamonds worth $10 billion went to the US, representing 30% of global sales in the sector. In Surat, Gujarat, where more than 80% of the world's rough diamonds are cut, orders have started to decline.
Small exporters are unable to withstand this blow, while big players are moving their factories to countries like Botswana, where the US tariff is just 15%. This change could affect the livelihood of lakhs of artisans in Surat.
Shrimp orders halted
India's shrimp industry has also been badly hit by this tariff. There is a huge demand for Indian shrimp in the US, where supermarket chains such as Walmart and Kroger are big buyers.
Last year, 2.6 billion dollars worth of seafood went to the US, of which 40% was shrimp. But now orders have stopped due to increased tariffs. Many shrimp farmers are now thinking of changing business.
This crisis will have a huge impact on the coastal areas, especially in states like Andhra Pradesh and Tamil Nadu, where lakhs of people are involved in this industry. If orders fall further, not only exporters but also small farmers and labourers may face difficulties.
What is the condition of smartphone and pharma sector?
Not all the news is bad. Smartphones and medicines are exempt from this tariff. Apple's suppliers in India such as Tata Electronics, Foxconn and Pegatron shipped smartphones worth $7 billion to the US in 2024. This figure reached $11 billion in January-June this year. Apple now makes most of its iPhones in India, which are sold in the US.
Similarly, the pharmaceutical industry also appears to be safe from Trump's tariff bomb. Companies like Dr. Reddy's, Zydus Lifesciences and Sun Pharma ship medicines worth $3.6 billion to the US. This sector is important for the US because of cheap generic medicines, so it has been exempted from tariffs.
Clothes and auto parts are also in limbo
The increased tariff will also be heavy on the textile industry. Companies like Shahi Exports, Welspun and Gokaldas exported clothes worth more than $2 billion to the US in 2024. Big brands like Walmart, Target and Gap are their customers. But a 50% tariff could reduce their profits, which could lead to higher prices or reduced orders.
The situation of auto parts is also similar. In 2024, auto parts worth $6.6 billion went to the US, of which $3.5 billion of parts for cars and small trucks have a 25% tariff. But parts worth $3 billion for large trucks and agricultural equipment will attract a 50% tariff. Companies like Bharat Forge, which supplies to Caterpillar and Volvo, are now looking for new ways.
Energy sector gets freedom from tariff
Companies manufacturing power and renewable energy equipment have got relief. Companies like Reliance Industries, Waaree Energies and Adani Group's Mundra Solar export solar cells and wind turbines to the US. There is no tariff on these, so this sector is unconcerned.
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