Washington, D.C. — As former U.S. President Donald Trump pushes for a sweeping 50% tariff hike on imports from major trading partners—including India—economic and trade experts warn of severe consequences for both nations.
The proposed USA tariffs on India would likely impact a wide range of Indian exports, including textiles, pharmaceuticals, electronics, and auto parts—sectors vital to India’s economy and closely tied to U.S. retail and manufacturing supply chains.
According to analysts, the tariff increase—if implemented—could:
- Raise U.S. consumer prices on goods “Made in India”
- Disrupt India’s export-driven industries
- Lead to retaliatory tariffs from India
- Undermine diplomatic progress in U.S.-India trade relations
USA Tariffs on India
“The USA tariffs on India would essentially act as a tax on American consumers while straining a growing bilateral trade relationship,” said global trade analyst Rajiv Kapoor.
India exported over $78 billion worth of goods to the U.S. in 2024, making the U.S. its largest trading partner. Key exports include generic drugs, IT services, garments, machinery, and auto components—all of which could be affected by the proposed tariff policy.
Trump’s rationale behind the tariff is to rebuild domestic manufacturing and reduce trade deficits. However, economists and former trade officials warn that such sweeping measures—particularly on strategic allies like India—could have unintended economic and geopolitical consequences.
Industry groups in both countries are urging policy makers to engage in dialogue and avoid escalating into a trade war reminiscent of the U.S.-China dispute that disrupted global supply chains in 2018–2020.
The Indian government has yet to respond officially but is expected to monitor developments closely as U.S. election dynamics evolve.