Donald Trump’s tariffs for India have kicked in today, and people across India are waiting to see what happens next. The staggering 50% tariffs have already impacted many industry workers severely.
Moreover, manufacturing sites across the country remain apprehensive about their continued functions. This has started to affect the ground workers, costing them their livelihood and job certainty.
The US President had announced the additional tariff of 25% on India, claiming that it was a “punishment” for the country as it continued to buy oil from Russia. Unlike many countries, India did not enter into a deal with the US to mitigate the now 50% tariffs.
“We should become self-reliant – not out of desperation, but out of pride,” Indian Prime Minister Narendra Modi stated during the 79th Independence Day address on August 15, 2025. “Economic selfishness is on the rise globally, and we mustn’t sit and cry about our difficulties; we must rise above and not allow others to hold us in their clutches.”
Despite the patriotic calls of encouragement and motivation, it is undeniable that the new tariffs will significantly impact multiple industries in India. Interestingly, Trump’s new tariffs have not been applied across all industries. In fact, pharmaceuticals, along with electronics and semiconductors, have been spared the high rates, with zero tariff payable on these products when they enter the US market. Similarly, no new tariff has been imposed on energy products and critical minerals.
In contrast, there are certain industries that are facing tariffs even higher than the well-touted 50%, including textiles, agricultural products, gems & jewellery, furniture, organic chemicals, marine products, and many more.
Textiles Industry Remain Apprehensive
Even before the tariffs became applicable, many industries had started to see the adverse effects of the high rates. According to the Federation of Indian Export Organisations (FIEO), textiles and apparel manufacturers in Tirupur, Noida, and Surat have already halted production.
“The US tariff announcement of August 6 is a huge setback for India’s textile and apparel exporters as it has further complicated the challenging situation we were already grappling with and will significantly weaken our ability to compete effectively vis-à-vis many other countries for a larger share of the US market,” the Confederation of Indian Textile Industry (CITI) told PTI.
The cumulative tariff of 50% applicable to textiles is the highest across the globe and is likely to weaken Indian manufacturers’ standing when compared to international competitors. “Textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production amid worsening cost competitiveness. This sector is losing ground to lower-cost rivals from Vietnam and Bangladesh,” FIEO President S C Ralhan said in a statement.
Diamond Workers Out of Work
Only days after Trump announced the additional tariffs, Gujarat’s Diamond Workers Union (DWU), claimed that about 1,00,000 diamond workers had lost their jobs to the new US tariffs in Gujarat’s Saurashtra region.
“The units spread over Saurashtra, Junagadh, Bhavnagar, and Amreli employ 300,000–400,000 people. Business was deteriorating in these places as US and China offtake of diamonds was slow. But the biggest blow came from the US tariff announced in April, which created an uncertainty in the diamond trade. Since then, cutting and polishing work has dried up, and workers were shown the door,” Bhavesh Tank, the Vice-President of DWU, told the Economic Times.
As per Kirit Bhansali, Chairman of the Gems & Jewellery Export Promotion Council (GERJPC), the US accounts for over $10 billion in exports, which is nearly 30% of the diamond industry’s total global trade. As such, the new tariffs have understandably brought the industry to a standstill.
Widespread Effects
From marine products to agricultural exports, there are but a handful of industries in India that are set to lose a huge consumer base with the application of Trump’s tariffs. “Seafood, especially shrimps, since the US market absorbs nearly 40 per cent of Indian seafood exports, the tariff increase risks stockpile losses, disrupted supply chains, and farmer distress,” Ralhan explained.
The high tariffs are not only affecting the livelihood of Indian workers, but will also likely provide a disadvantage in the global market that will be hard to overcome. With approximately 55 per cent of India’s US-bound shipments ($47–48 billion) now exposed to pricing disadvantages of 30–35 per cent, Indian goods have been rendered uncompetitive compared to competitors from China, Vietnam, Cambodia, the Philippines, and other Southeast and South Asian countries,” added Ralhan.
The asymmetrical tariffs applied to various industries in India by the Trump regime are sure to have widespread consequences. The billion-dollar industries now face staggeringly high barriers to entering the US market. While the government is now urging manufacturers and business owners to become more self-reliant, the expected loss of consumers is a daunting prospect that many are observing with bated breath.
The Way of Self-Reliance
In response to the heightened tariffs, India has taken an approach of self-reliance while also seeking alternative markets. The ideal solution, of course, would be for the tariffs to decrease, and it is an avenue that India has not yet ruled out.
“Leveraging the negotiating window for urgent diplomatic engagement with the US still remains the key. Yet another approach could be the promotion of Brand India and innovation through enhanced global branding, investment in quality certifications, and embedding innovation in export strategy to make Indian goods more attractive globally,” FIEO stated.
Meanwhile, the morale of workers across India remains in danger, but the Modi government seems intent on keeping the spirits high. During the Independence Day address, the Indian Prime Minister promised a Diwali gift in the form of a “massive tax bonanza.” The challenge for India and its workers now remains to ensure that the job losses remain as low as possible and the highly impacted industries are able to find alternate sources of revenue.
