Trump’s recent 50% tariff on Indian imports has severely strained US-India relations and caused ripples domestic and abroad, especially across export-heavy sectors. The sweeping duties, targeting products like apparel, jewelry, footwear, and chemicals, threaten thousands of jobs, particularly in India’s manufacturing hubs, and are projected to cut Indian exports to the US by around 40% in the coming year. This move has virtually halted trade talks and undermined years of strategic partnership between the two democracies, raising concerns among exporter associations and policy experts about long-term growth and economic cooperation.
For American consumers and businesses, these tariffs have raised costs on everyday goods and disrupted supply chains, with inflationary knock-on effects expected as production gets costlier and alternatives are sought. While some observers note that India’s push for higher domestic consumption could soften the impact on its economy and small businesses, immediate fallout is evident in threatened livelihoods, stalled investments, and a cooling of diplomatic engagement. With both countries currently at an impasse, the economic and geopolitical costs of Trump’s “America First” approach continue to mount.
Tariffs have hit Indian export sectors hard, risking over 40% reduction in exports to the US and thousands of job losses.
American consumers face higher prices and supply chain disruptions, with possible inflationary effects.
Diplomatic relations are strained, with trade talks stalled and expert warnings about the cost to long-term economic cooperation.
