US Imposes 25% Tariff on Indian Goods
On Friday, the US President announced a significant 25% import tariff on Indian goods, raising concerns over potential mass layoffs in export sectors, particularly textiles.
Impact on Indian Exports
- Goods shipped before August 7 and arriving by October 5 will pay a baseline 10% tariff, excluding specific sectors like automobiles, steel, and aluminum.
- Key exemptions include pharmaceutical drugs, semiconductors, electronics, and energy products.
- The Global Trade Research Initiative estimates a 30% fall in Indian goods exports, from $86.5 billion in FY25 to $60.6 billion in FY26.
Concerns from the Apparel Industry
- Apparel exporters warn of potential mass layoffs due to the 25% tariff.
- The textile and apparel industry is India's second-largest employment generator.
- The Confederation of Indian Textile Industry (CITI) urges government intervention to ensure competitive pricing of raw materials.
- India's textile exports to the US were valued at $4.59 billion between January and May 2025, a 13% rise from last year.
Gems and Jewellery Sector Impact
- The Gems and Jewellery Export Promotion Council (GJEPC) anticipates challenges, especially in the loose diamond market due to low margins.
- 30% of India's gems and jewelry exports, worth $10 billion, go to the US.
