Who gets hitTrump’s 50% tariffs on India: Details on sectors affected

With the additional 25% taxes imposed by President Donald Trump as a “penalty” for New Delhi’s purchase of Russian oil going into force on Wednesday, Indian exports to the United States are now subject to 50% tariffs, severely hurting certain industries. The US has long been the main overseas market for a number of industries in India’s export ecosystem. Some industries, especially those related to gems and jewelry, textiles, car components, and seafood, are suffering greatly, while vital industries like cellphones, pharmaceuticals, and energy have been spared.

With about 30% of the industry’s worldwide sales, the US is the biggest consumer of Indian jewelry and diamonds. With $10 billion in exports last year alone, or over ₹87,600 crore, this industry is in danger of significant disruption as a result of Trump’s tariffs. With a steep decline in US orders, Surat, the world center for diamond polishing, is already feeling the pinch. According to the study, larger companies are considering moving their operations to nations with lower US tariffs, such as Botswana, which only has a 15% charge, while small exporters are left with few options.

According to figures cited in the Reuters report, India exported $2.6 billion (₹22,800 crore) worth of seafood to the US last year, with 40% of that amount coming from shrimp. Walmart and Kroger are said to be important US customers. Exporters say increased duties have led to a slowdown in orders, and some shrimp producers are considering exiting the sector completely. In 2024, India sent more over $2 billion worth of textiles and clothing to the United States, and in the first half of 2025, it sent an additional $1 billion. Shahi Exports, Welspun, Indo Count Industries, Trident, and Gokaldas Exports are significant exporters of clothing and textiles. Walmart, Target, Costco, and Gap are some of the main customers.

In 2024, Indian auto components were sold to the US at a value of $6.6 billion (₹58,000 crore), making it the largest export market. 25% tariffs will be applied to auto and small truck parts valued at $3.5 billion (₹30,738 crore). The entire 50% tariff is now applied on larger vehicle components (used in trucks and farm equipment), which are valued at an additional $3 billion (₹26,355 crore).

Large exporters like Motherson, Sona Comstar, and Bharat Forge are probably going to suffer.

India sees the Trump tariffs as US “targeting” the country for Russian oil imports. In a statement on August 7, India said, “We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India.”

“It is therefore extremely unfortunate that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest,” a statement by the Ministry of External Affairs said.

India had previously labelled Trump’s threats against it as “unjustified and unreasonable” and accused the US and European Union of unfairly targeting New Delhi for its trade with Russia.