Trade War Update: Washington Imposes 50% Tariff on Indian Exports from Today, Modi Urges 'Vocal for Local'

National News: The US government has decided to impose an additional 25% import duty on goods coming from India, which will come into effect on August 27, 2025. This move has raised major concerns about India's economy and export industries.

Affected Industries

• Textiles and Apparel—This sector will now be charged 50% duty. India exports about $10.8 billion every year but is at risk of losing half of its share in the US market. Many units in major textile industry centers like Tirupur, Noida, and Surat have stopped production.
• Diamonds and Jewellery—Exports worth about $10 billion will be affected. The jobs of thousands of workers in cities like Mumbai and Surat may be at stake.
• Marine products—The duty on shrimp has been increased to 60%. This will affect exports worth $2.4 billion, and the situation of marine centers like Visakhapatnam may become serious.
• Auto parts—25% duty will be imposed on exports worth about $3.4 billion, while the tax on the remaining auto exports has been increased to 50%.
• Carpets and handicrafts—52.9% duty has been imposed on this sector. Countries like Turkey and Vietnam can replace India in the US market, which will directly affect the livelihood of small artisans.

Economic impact

India sells goods worth about $87 billion to the US every year. But after the new duty is implemented, there may be a big decline in exports. It is estimated that India may suffer a loss of Rs 50,000 to 60,000 crore.

Experts say that this will not only reduce exports but will also put employment at risk. Thousands of jobs could be at risk, especially in areas like Tirupur. Apart from this, the Indian rupee could weaken due to reduced exports, and foreign investment could also be affected.
Government's preparation

Prime Minister Narendra Modi has appealed to the countrymen to become "vocal for local." He said that Indians should adopt domestic products so that dependence on foreign countries is reduced.

India will take necessary steps to protect its sovereign interests

The government is also taking steps to deal with the situation. Work is being done rapidly on GST reforms, production-related policies, and incentive packages. New Delhi has also made it clear that India will take necessary steps to protect its sovereign interests and economic security.

The US tariffs are going to affect many industries and millions of workers in India. In the coming times, it will be important to see how India deals with this challenge on both economic and diplomatic fronts.