By Safe Investment August 7, 2025
US Import Duty on Indian Goods: The impact of America's 50% double tariff will not be limited to trade figures - it will reach India's labourers, artisans, small industries and common buyers. Crores of jobs are under direct threat.
Let us understand in simple language which sectors will be most affected by this, and what impact it will have on daily life, jobs, and prices.
1. Textile and garment sector (clothes)
America is the biggest buyer of Indian readymade garments. More than Rs 1.3 lakh crore worth of clothes is exported from India to America every year. After double tariff, Indian clothes will become 50% more expensive there. Due to which American companies will shift towards cheaper sources like Bangladesh, Vietnam and Myanmar.
Impact on the common man
Lakhs of workers (especially women) work in this sector in India. Now if exports decrease, then obviously orders will also decrease. Due to which factories will be closed. As a result, jobs will be lost.
According to the data of the Textile Ministry of India, about 45 million (4.5 crore) people are directly or indirectly associated with the garment sector in the country.
2. Gems and Jewellery (Diamonds, Gold, Silver Jewelleries)
America buys the most polished diamonds and jewellery from India. Due to 50% tariff, American customers will not buy expensive products, and orders will fall.
Impact on the common man
Thousands of artisans in cities like Surat, Jaipur, Kolkata are dependent on this industry. Small traders and handicraftsmen will be most affected by the tariff.
According to the report of GJEPC India, the annual export of gems-jewellery from India to America is Rs 2.5 lakh crore. You can estimate the loss yourself.
Also read- 'So many sanctions will be imposed that you will forget to count' Trump's open threat after 50% tariff on India
3. Footwear and leather goods (shoes, slippers, bags)
America is a big buyer of leather products from India. Due to increase in tariff, Indian footwear will become expensive there, and their sales will decrease.
Impact on common man
Thousands of manufacturing units in cities like Kanpur, Agra, Chennai will be affected. The income of daily wage labourers working in the leather sector will be affected.
4. Pharmaceuticals and Healthcare (Some relief)
This is one sector to which Trump has given some relief in tariff. Now the question arises that what relief has this sector got? The answer is that America did not increase tariff on medicines and pharma API, because it itself is dependent on them.
According to Pharmaceuticals Export Promotion Council (Pharmexcil), every year India exports medicines worth 30 billion dollars (about 2.5 lakh crore rupees) to America. In such a situation, if tariff is imposed on this sector, then it is not difficult to guess how much chaos will be created.
5. Smartphones and Electronics (Relief may be available)
Companies like Apple, Samsung manufacture in India and export to America. This sector has currently got tariff exemption. But the threat remains.
If the tariff policy becomes more stringent, then investment in the electronic sector may stop.
6. Impact on the common man of India
The impact of increasing import duty (tariff) on Indian products by America by 50% will directly affect the workers, industries and consumers of India. The biggest blow will be to employment, especially in the textile, jewellery, footwear and MSME sectors. The jobs of crores of people associated with these sectors are in danger, because America is the biggest buyer of these products.
A fall in exports will mean that the income of Indian companies will decrease, which will directly affect salaries, bonuses and new employment opportunities. Many companies may resort to layoffs or take drastic steps like salary cuts.
Along with this, the threat of inflation is also looming. The input cost is likely to increase in the products whose manufacturing uses raw material or technology coming from America. The burden of this will ultimately fall on the common man.
Modi government's preparation!
After the US increased the tariff, the Indian government has come into active mode. First of all, measures like subsidy, tax exemption and incentive schemes are being seriously considered to provide relief to the affected industries. Particularly priority is being given to MSME and labor-intensive sectors, where employment can be directly affected.
At the same time, diplomatic talks with the US administration have been intensified. Senior officials of the Indian Embassy and the Ministry of External Affairs are in constant touch with US representatives in Washington. The aim is to find a diplomatic solution to this tariff dispute, so that further tensions do not increase in bilateral trade and relations.
Apart from this, the government is also making a strategy to connect exporters to new markets. Especially regions like Africa, Central Asia and Middle East are being seen as new business opportunities. For this, coordination is being made between different ministries so that Indian products can enter these markets quickly and the losses incurred from America can be compensated.
The impact of America's 50% double tariff will not be limited to trade figures only - it will reach India's laborers, artisans, small industries and common buyers. This is the time for India to focus on diversification, new partnerships and domestic market - otherwise the common Indian will suffer the biggest loss of global tariff politics.
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