Trump Tariffs Impact on India: Trade Expert Reveals Sector Most Affected
Introduction:
The Trump tariffs impact on India is once again under scrutiny as a leading trade expert reveals which sector is bearing the brunt of escalating trade restrictions. As Donald Trump signals a renewed wave of protectionist trade policies ahead of a potential 2024 return, Indian exports are in the crosshairs—and not all sectors are equally equipped to absorb the blow.
With trade between the U.S. and India exceeding $190 billion in 2023, the consequences of tariff hikes go far beyond political posturing. Indian industry leaders are raising alarms over disrupted supply chains, higher input costs, and lost market share. The question dominating policy circles now is: how deep will the Trump tariffs impact on India go?
The Sector Worst Affected by Trump Tariffs Impact on India
According to a leading trade expert cited by Hindustan Times, the worst-hit sector is India’s textiles and apparel industry. Often seen as one of India’s strongest export sectors, this segment relies heavily on access to U.S. markets. Tariffs have significantly raised costs for U.S.-based buyers, making Indian textiles less competitive compared to rivals like Bangladesh and Vietnam.
This has led to a sharp decline in order volumes and long-term sourcing contracts. Experts fear that continued tariff pressure could push small and medium textile exporters out of global supply chains altogether.
Why the Textile Sector Matters So Much
India’s textile industry:
- Employs over 45 million people directly
- Contributes about 12% to India’s total export earnings
- Serves as a backbone for rural employment and manufacturing
With such a broad economic footprint, the Trump tariffs impact on India’s textile sector is not just a trade issue—it’s a socio-economic challenge. Declining export orders are already causing layoffs, delayed wages, and factory closures in key textile hubs like Tiruppur, Ludhiana, and Surat.
Ripple Effects on Other Indian Export Sectors
While textiles top the list, other industries facing significant setbacks due to Trump tariffs include:
- Pharmaceuticals: Regulatory bottlenecks plus tariffs are squeezing margins.
- Engineering goods: India’s machine tools and auto parts see declining competitiveness.
- Gems and jewellery: High tariffs affect diamond and gold jewellery shipments.
The broader Trump tariffs impact on India could shave off a considerable portion of export earnings if the policy expands further.
Government’s Response to the Trump Tariffs Impact on India
The Indian government has initiated high-level discussions with its U.S. counterparts and is considering multiple policy responses, including:
- Offering export subsidies to offset losses
- Exploring new free trade agreements in Southeast Asia and Europe
- Strengthening domestic supply chains to increase global resilience
India’s trade ministry is also calling for industry input to recalibrate incentives under its Production Linked Incentive (PLI) scheme to target impacted sectors more effectively.
Is There Any Upside?
Some analysts argue that Trump’s tariffs might eventually force Indian exporters to diversify their markets and innovate faster. While the transition could be painful, it may help reduce over-dependence on a single trade partner.
Additionally, countries like the UAE, UK, and Australia are emerging as new trade allies for India, opening doors for rerouting supply chains.
Conclusion: The Trump tariffs impact on India is more than just geopolitical chess—it’s a real, immediate threat to critical export sectors, particularly textiles. With millions of jobs and billions in revenue at stake, India must act quickly to shield its industries and adapt to a new, possibly protectionist global trade order.
As discussions evolve on Capitol Hill and in New Delhi, businesses and policymakers alike are watching closely. The next move could define the trajectory of India’s global trade in the years to come.
Dont Miss Out:
