India’s ‘trade war’ with the US has begun. The 50 per cent US tariff on Indian goods came into effect from today with exporters staring at the possibility of huge losses. Prime Minister Narendra Modi has promised that MSMEs and farmers will not have to face losses due to a decline in exports. The US accounted for nearly 20 per cent of India’s $437.42 billion worth of goods exports in 2024-25. In 2024-25, India-US bilateral trade in goods stood at $131.8 billion. India exported $86.5 billion worth goods to the US and imported $45.3 million worth of goods from the US. Textiles/ clothing, gems and jewellery, shrimp, leather and footwear, animal products, chemicals, and electrical and mechanical machinery exporters will face huge losses due to steep US tariff, making their goods costlier. Pharmaceuticals, steel, copper and aluminium, energy products and electronic goods have been kept out of the ambit of 50 pc tariff. US President Donald Trump had imposed 25 pc tariff on Indian goods on July 29, and followed it up by slapping additional 25 pc tariff on August 6 alleging that India was importing Russian crude.
