From 'Tariff King' To 50% Duties, How US Raised Import Barriers On India In Just 10 Months | Explained

Key Highlights:

- US tariffs on Indian goods now reach up to 50 percent, highest among key trade partners.

- Shrimp, textiles, jewellery, and machinery among sectors hardest hit by new duties.

- Exporters warn of steep losses and drop in competitiveness against rivals like Vietnam and Bangladesh.

New Delhi: The United States has sharply increased import duties on Indian goods over the last 10 months. Starting from labeling India the "Tariff King" in 2019, President Trump has now raised tariffs to as high as 50 percent, especially after India’s continued purchase of Russian oil.

Experts say these actions are part of pressure tactics to push India into signing a Bilateral Trade Agreement (BTA) on U.S. terms.

Timeline of Tariff Hikes

Oct 2019: Trump calls India "Tariff King"

Sep 2024: Labels India "tariff abuser"

Apr 2, 2025: 26 percent import duty announced

Apr 5, 2025: Executive order sets 10 percent base tariff + 16 percent for India (starting Apr 9)

Apr–July: India-specific rates paused twice, but base tariff continues

July 30, 2025: 25 percent tariff announced with penalty for buying Russian oil

Aug 6, 2025: Another 25 percent duty added—total reaches 50 percent on Indian goods

What is the Current Tariff Structure?

As of August 7, 2025, Indian exports to the U.S. face:

25 percent duty (10 percent base + 15 percent India-specific)

+ any existing trade remedy duties

From August 27: Extra 25 percent for Russian oil ties, taking total to 50 percent

Example:

India’s shrimp exports will face 58.26 percent total duty (25 percent base + 25 percent penalty + anti-dumping and subsidy duties).

Sectors Facing the Hardest Hit

Indian sectors badly affected by the high tariffs include:

- Shrimp (Rs 2 billion exports)

- Textiles and clothing (Rs 8.4 billion combined)

- Jewellery & gems (Rs 10 billion)

- Machinery & appliances (Rs 7.7 billion)

Furniture, chemicals, vehicles, and carpets

Exporters say these high duties will make Indian goods more expensive, causing a major drop in sales to the US.

Who is Exempted?

Some categories are not affected by the 50 percent tariff:

- Pharmaceuticals (including APIs and finished drugs)

- Energy products (like oil, gas, coal)

- Electronics and semiconductors (phones, laptops, displays, chips)

- Critical minerals

India at a Disadvantage Compared to Rivals

India now faces the highest tariff rate in the U.S. market along with Brazil (50 percent ). In comparison, competitors face lower duties:

Vietnam, Philippines – 20 percent

Malaysia – 25 percent

China, Sri Lanka – 30 percent

Bangladesh – 35 percent

This puts Indian goods at a clear pricing disadvantage in the US.

What Exporters Are Saying?

FIEO: Shocked, 55 percent of exports will be hit

CITI: Huge setback for textiles

Kama Jewellery: Severe blow to exports

GTRI: Could cut Indian exports to the US by 40–50 percent