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yesterday

U.S. Imposes 50% Tariffs on Indian Imports, Triggering Growth and Job Concerns

Washington’s duties have prompted New Delhi’s formal protest, raising forecasts of GDP and job losses in labour-intensive industries.

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Overview

  • President Trump’s August 6 executive order adds a 25% penalty to the existing 25% reciprocal tariff on Indian goods, bringing the total rate to 50% with implementation scheduled later this month.
  • India’s Ministry of External Affairs condemned the levies as unfair and indicated it will take all necessary measures to defend national interests.
  • Exemptions under ongoing Section 232 reviews shield sectors such as pharmaceuticals, semiconductors and electronics from the reciprocal tariffs, reducing headline exposure for those industries.
  • Analysts at Crisil, Nomura and former RBI governor Subbarao warn the duties could trim 0.2–0.5 percentage points from India’s annual GDP and endanger jobs across textiles, gems and seafood exports.
  • U.S. Treasury Secretary Scott Bessent described India as “a bit recalcitrant” but left open the possibility of concluding negotiations by October, leaving the duration and severity of the tariffs uncertain.