Advertising
From Pink Slips to Silent Sidelining: Inside adland’s layoff and anxiety crisis
Donald Trump’s tariffs to hit $48 billion of Indian exports: Gems to garments - a sector-by-sector breakdown
US President Donald Trump’s new 50 percent tariff will hit $48 billion of Indian exports from August 27, with labor-intensive sectors like textiles, gems, garments and shrimp facing the steepest duties while electronics and pharmaceuticals remain exempt.
A 50 percent tariff on Indian exports to the United States, ordered by President Donald J. Trump, will come into effect at 12:01 a.m. Eastern time on August 27. The US Department of Homeland Security confirmed the new duties, which will cover roughly $48.2 billion worth of Indian shipments, according to government estimates.
India exported $86.5 billion worth of goods to the US in fiscal year 2025. Nearly $60 billion came from its five largest export categories, according to reports. Labor-intensive sectors will take the hardest hit.
Here’s how the new tariffs break down by sector:
Engineering goods ($19.2 billion) – Now face 50% tariff. – Inputs like steel and aluminum were already under 50% since April.
Gems and jewelry ($9.9 billion) – Effective tariff: 52.1%.
Ready-made garments ($5.3 billion) – Tariff up to 63.9% — one of the steepest.
Textiles and apparel overall ($10.8 billion) – Significant exposure, with higher-than-50% duties in many subcategories.
Shrimp ($2.4 billion) – Duties rise to 60%.
Carpets ($1.2 billion) – Effective tariff: 52.9%.
Leather, footwear, agriculture, processed foods – All now subject to 50% tariff.
Organic chemicals – Total tariff rate: 54%.
Machinery and mechanical appliances – Effective duties: 51.3%.
Auto components ($6.6 billion in 2024) – $3.4 billion (mainly car and truck parts) face 25%. – The remainder subject to 50%.
Exemptions remain significant:
Electronics ($14.6 billion) – excluded.
Pharmaceuticals ($10.5 billion) – excluded.
Petroleum products ($4.1 billion) – excluded.
Also exempt: books, brochures, plastics, cellulose ethers, ferroalloys (ferromanganese, ferrosilicon manganese, ferrochromium), and computing equipment such as motherboards and rack servers.
What’s at stake
Global Trade Research Initiative estimates that $27.6 billion of Indian exports will escape the new duties for now.
Still, as much as $60.2 billion could ultimately be affected if the tariff scope widens.
The escalation highlights Washington’s more protectionist stance and threatens to ripple across India’s labor-intensive export industries.
SPOTLIGHT
From purpose-driven work and narrative-rich brand films to AI-enabled ideas and creator-led collaborations, the awards reflect the full spectrum of modern creativity.
Read More“Confusion creates opportunity for agile players,” Sir Martin Sorrell on industry consolidation
Looking ahead to the close of 2025 and into 2026, Sorrell sees technology platforms as the clear winners. He described them as “nation states in their own right”, with market capitalisations that exceed the GDPs of many countries.