The Indian government estimates that the newly imposed 50% US tariff will affect exports worth USD 48.2 billion. Officials have warned that the additional duties could make shipments to the US commercially unviable, potentially leading to job losses and slower economic growth.

To soften the impact, the government is working on a multi-pronged strategy, including Goods and Services Tax (GST) reforms aimed at boosting domestic demand. The 50% tariff, effective from Wednesday (August 27), is expected to hit exports of textiles, shrimp, leather, and gems and jewellery the hardest.

The US accounts for nearly 40% of India's seafood exports, making the sector—especially shrimp—particularly vulnerable. Pharmaceuticals, electronics, and petroleum products remain exempt from the new duties. According to The Economic Times, India exported goods worth USD 86 billion to the US in FY2025.

Source: Trading Economics