US President Donald Trump’s additional 25 percent tariff on Indian imports officially came into force on Wednesday, August 27, doubling duties on Indian goods to 50 percent. The move follows weeks of negotiations between Washington and New Delhi, which ultimately failed to yield results favourable to India. The Indian government has criticized the levies as “unjustified.”
India Among The Highest Tariff-Facing Countries
The fresh duties, imposed by Trump citing India’s purchase of Russian oil, now place Indian levies among the highest in the world, on par with countries like Brazil and China. Nearly 55 per cent of India’s shipments to the US could be affected, with sectors such as apparel and leather expected to bear the brunt. The timing is particularly detrimental, coinciding with the period when exporters typically secure orders for the American festival season.
Also Read: Donald Trump’s Additional 25% Tariff on Indian Goods Takes Effect: All You Need to Know
Which States Will Be Hit Most With Trump’s 50% Tariffs?
The tariff increase carries significant implications for India’s top exporting states – Gujarat, Maharashtra, Tamil Nadu, Karnataka, and Uttar Pradesh – which collectively account for three-fourths of India’s merchandise exports, valued at $437 billion in FY25.
Gujarat – Petroleum products dominate exports at $43.9 billion, followed by engineering goods ($16.6 billion), gems and jewellery ($8.3 billion), and textiles ($5.6 billion).
Maharashtra – Engineering goods lead with $22.5 billion, alongside gems and jewellery ($13.7 billion), chemicals ($8.1 billion), agricultural products ($5.4 billion), and textiles ($3.8 billion).
Tamil Nadu – Exports are more diversified, including engineering goods ($18.1 billion), electronic goods ($14.6 billion), textiles ($8 billion), and leather products ($1.6 billion).
A sharp contraction in exports from these states could impact both state economies and employment, particularly in labour-intensive manufacturing hubs.
Trump on India-Pakistan Tensions And Use of Trade
Separately, on Tuesday, President Trump claimed that he directly intervened to prevent a potential nuclear confrontation between India and Pakistan in May. He stated that he warned both countries of crippling trade tariffs “so high that your head’s going to spin.”
Also Read: Donald Trump’s Additional 25% Tariff on Indian Goods Takes Effect: All You Need to Know
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin
