New Delhi : Effective today, the United States has imposed a 25% import tariff on Indian goods, a move expected to heavily impact India’s textile, metals, pharmaceuticals, and seafood exports, especially shrimp.
Under the directive of U.S. President Donald Trump, this sharp tariff hike aims to correct what he terms an “imbalanced trade relationship” between the two nations. The increased duties will make Indian products significantly costlier in the American market, leading to a drop in sales and financial strain on Indian exporters.
Industry experts warn that the hardest hit will be:
- Metal and alloy industries
- Generic pharmaceutical firms
- Marine food exporters, with shrimp facing a serious market loss
In addition to the flat 25% duty, specific agricultural and processed food items have witnessed even steeper increases:
- Agricultural goods: Up to 39%
- Edible oils: Around 45%
- Maize and soy products: Close to 50%
This policy shift follows repeated warnings from the White House, which had earlier criticized India for maintaining trade barriers. President Trump, while announcing the decision, remarked,
“Despite our friendship, the U.S. and India have not engaged in balanced trade.”
The ripple effects of the new tariffs are already being felt in Indian export markets. U.S. buyers are expected to shift towards cheaper alternatives from other nations, further eroding India’s competitive edge.
The U.S. remains one of India’s top export destinations. With this move, many Indian exporters may be forced to cut production, bear losses, or find new markets.
As trade tensions escalate, Indian policymakers and industry leaders are expected to seek diplomatic resolutions and tariff rollbacks, though analysts suggest that in an election season, the U.S. may be unwilling to reconsider quickly.
Stay tuned for reactions from Indian exporters and trade ministry updates.
