Trump’s 50% Tariff on Indian Exports: Who Are the Biggest Losers?

The United States has imposed a 50% tariff on Indian exports after President Donald Trump announced new trade measures linked to India's purchase of Russian oil. The decision, effective Wednesday, puts several key export sectors under strain.

Industries like gems and jewellery, textiles, auto parts, and seafood are among the worst affected. However, smartphones and pharmaceuticals have been spared.

Gems and Jewellery Industry Impact

The US is India's largest market for gems and jewellery, accounting for nearly 30% of global sales. India exported $10 billion worth of gems and jewellery to the US in 2024. With new tariffs, Surat's diamond polishing industry is already seeing fewer orders from American buyers.

Seafood Exports Struggle

India shipped $2.6 billion worth of seafood to the US last year, with shrimp making up 40% of sales. Retail giants like Walmart and Kroger are major clients. Now, orders are on hold, and many shrimp farmers are worried about survival.

Textiles and Auto Parts Under Pressure

India exported over $2 billion in textiles and apparel to the US in 2024 and another $1 billion in the first half of 2025. Big suppliers such as Shahi Exports and Welspun face losses as US retailers relook at sourcing.

The auto components industry is also hit hard. Of the $6.6 billion worth of parts exported to the US in 2024, smaller car parts now face a 25% tariff, while bigger vehicle components are taxed at 50%.

Sectors Not Affected

Some industries remain safe from tariffs. India exported $7 billion worth of smartphones and electronics to the US in 2024, mostly through Apple's manufacturing partners like Tata Electronics and Foxconn. These shipments will continue.

Pharmaceuticals are also exempt. India exported $3.6 billion worth of generics to the US last year, and demand remains strong. Renewable energy equipment, including solar cells and wind turbines made by Reliance and Adani, are unaffected as well.

India's Response

India has criticised the tariff hike, calling it unfair. On August 7, the Ministry of External Affairs said that buying Russian oil is a matter of energy security for India's 1.4 billion people. The ministry expressed disappointment over what it called unjustified actions by the US and the European Union.

The new tariffs are set to hit some of India's biggest export sectors, especially gems, textiles, seafood, and auto parts. Smartphones, medicines, and renewable energy remain safe. Trade experts warn that the move could hurt jobs and strain India-US relations in the coming months.