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U.S. 50% Tariffs Jolt Indian Export Hubs as States, Sectors Seek Relief

The levy tied to India's Russian oil purchases has triggered urgent pleas for support from exporters, with state governments escalating requests to New Delhi.

Overview

  • U.S. Customs and Border Protection confirmed the 50% surcharge on Indian goods took effect on August 27, covering entries for consumption from that date.
  • Tamil Nadu warns of up to $3.93 billion in export losses with textiles hardest hit, and the state joins others in asking the Centre for liquidity support, duty and GST relief, and higher export incentives.
  • Carpet exporters in Bhadohi report most goods on hold and production paused since the August 26 cutoff, with factories cutting staff by 60–70% and CEPC urging a cost‑sharing relief plan.
  • Tea industry leaders say U.S.-bound shipments are likely to decline and seek measures including a minimum sustainable price, higher RoDTEP benefits, orthodox tea subsidies, and curbs on low‑quality imports.
  • Handicraft exporters from Moradabad warn of a 25–30% drop in U.S. sales, $400–450 million in revenue losses, and risks to 200,000–250,000 jobs, while some brass traders expect limited sectoral impact due to domestic demand.