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

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.