How Many Sectors Will Be Hit By Trump’s 50% Tariffs? Can PM Modi Save India’s Exports?

America’s 50% tariff hike targets India’s seafood, textiles, gems and auto parts – ₹2 lakh crore exports at risk. Over 10 lakh jobs in danger. With talks scheduled on August 24, can Modi govt secure a deal before the August 27 deadline? Full analysis inside.

New Delhi: The US exports on Indian exports from 25% to 50% ** on Indian exports (effective from 27 August 2025) have shaken many industries. This step has been taken by India in response to continuing oil imports from Russia. Let us understand in detail how this decision will affect the field:

Detailed impact on Indian export sectors of American tariff hike

1. Seafood Export: "Doomsday" status

Effect

America buys 40% (about ₹ 60,000 crore) of India's total sea exports, of which shrimp is the major product.

A 50% tariff will make Indian shrimp expensive, while competitive countries like Vietnam and Indonesia will benefit.

Outcome

Exporters have heavy losses on existing stock (15% inventory).

Farmers can stop the next crop (shrimp seeding).

Industry response

"This is doom to the maritime "industry"—Seafood Exporters Association of India

Demand for immediate subsidy/relief from the government

2. Textiles and Garments: Danger on Employment

Effect

India's ₹ 40,000+ Crore Annual Export to America

Cotton cloth and readymade garments are most affected.

Immediate disadvantage

New orders stopped.

Old orders will be shipped with a 25% loss.

10 lakh+ employees (especially women workers) in danger

Industry response

"We will lag behind Vietnam/Bangladesh." - Tirupur Exporters Association

Decision to close construction units.

3. Gems and Jewelry: Manufacturing in Dubai/Mexico will shift.

Effect

Export of ₹ 83,000 crore (2024-25) to America.

Industry Strategy

Installing temporary manufacturing units in Dubai and Mexico

Titan Company Considering Shifting Production to Middle East

Challenge

25% tariff even though the margin was 3-4%; business impossible at 50% - GJEPC

4. Auto Parts: The Indian stake in the US market will decrease.

Effect

Export of ₹ 61,000 crore to America (**32%** of India's total auto exports)

Tractor and construction machinery parts affected

Loss

50% tariff after increasing prices

Benefits Vietnam/Thailand

5. Widespread impact on the economy

Macroeconomic Risk

Exports will decrease → the rupee will be weak (against the dollar).

Unemployment will increase (mostly in textiles and jewelry).

GDP Growth Effect (estimates of 0.2-0.3% reduction in Q3-Q4)

Expect government action

24 August: talks with the American team on 24 August

Possibility of export subsidy/tax exemption to affected industries

"The next 20 days are decisive."

This tariff can create a situation like a business war for India. The government faces a dual challenge:

1. Quick compromise with America

2. Alternative Markets (EU, Middle East)

If no solution has been found by 27 August, then the immediate crisis will deepen the immediate crisis in areas such as seafood, textiles, and jewelry. The eye of the industry is now on talks between the Modi government and the Trump administration.