The imposition of 50% tariff by the Trump-led administration on imports from India is highly apparent in the export data for September. Notably, the share of exports to the US is on a decrease to 15% in September from 20 % in April to August 2025 period. However, exports to the China & the UAE has surged in the same period. Exports of textiles 1and leather goods have reduced, and other sectors have also witnessed lower growth.
50 % tariff affected the growth in exports of gems and jewellery
The GTRI report stated that Indian goods observed Washington’s 50 percent tariff on most products, along with sectors such as textiles, gems, and jewellery suffering the heaviest losses in the month of September. Moreover, the ready-made garments exports reduced by 10.1 per cent in comparison to 5.8 per cent in the April to August period. In addition, exports of cotton yarn and fabrics dropped by 11.7 per cent in September. Not only this, but the growth in the export of gems and jewellery slumped to 0.4 per cent. On the contrary, electronic goods opposed the trend as its growth escalated to 50.5 %, because of higher smartphone shipments from India
Trump’s 50% tariff came into effect in August
Trump’s 50% tariffhas come into effect since August 27, affecting goods exported to the US. In its aftermath, the government is looking for numerous ways to reduce its effect on the Indian Economy. Certainly, Trump’s 50% tariff will affect $ 48.2 billion worth of export merchandise to America. The US has already implemented a 25% reciprocal tariffson Indian imports on August 7. In addition, a 25% extra duty has come into effect from August 27, since India is importing Russian oil.