Wednesday, September 09
New Delhi: India’s economy faces significant risks from steep US tariffs, with export-heavy sectors such as textiles, gems and jewellery, food and marine products likely to bear the brunt, said Aurodeep Nandi, India Economist at Nomura. While smartphones, pharma and petroleum products remain exempt, nearly 30–40% of India’s export basket is directly exposed to the tariff hike, he told ET Now. Another 30% to 40% of the total basket is either exempt or treated differently. Auto is getting hit with a 25% tax since they fall under a different category in Section 232. Likewise, iron and steel segment is already taxed at 50%. The economist cautioned: “The direct hit is on exports, but the second-round effect will be felt in jobs and demand. If tariffs persist until FY26, the recovery for
Indian exporters are facing one of the toughest trade shocks in years as the United States on Wednesday officially imposed an additional 25% tariff on key goods from India, adding to an existing 25% duty and bringing the total US levy to 50%.The tariffs apply to products “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am EDT on August 27, 2025” (9:31 am IST), according to the Department of Homeland Security.The move is linked to India’s continued purchases of Russian oil and defence equipment. White House trade adviser Peter Navarro and US Treasury Secretary Scott Bessent have accused India of indirectly funding Russia’s war in Ukraine through its oil imports. Bessent noted earlier this month that India now sources 42% of its oil from Russia
