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Donald Trump's 25% tariff hit triggers layoff warning from exporters | Current Affairs | Vision IAS

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Donald Trump's 25% tariff hit triggers layoff warning from exporters

1 min read

US Imposes 25% Tariff on Indian Goods

On Friday, the US President announced a significant 25% import tariff on Indian goods, raising concerns over potential mass layoffs in export sectors, particularly textiles.

Impact on Indian Exports

  • Goods shipped before August 7 and arriving by October 5 will pay a baseline 10% tariff, excluding specific sectors like automobiles, steel, and aluminum.
  • Key exemptions include pharmaceutical drugs, semiconductors, electronics, and energy products.
  • The Global Trade Research Initiative estimates a 30% fall in Indian goods exports, from $86.5 billion in FY25 to $60.6 billion in FY26.

Concerns from the Apparel Industry

  • Apparel exporters warn of potential mass layoffs due to the 25% tariff.
  • The textile and apparel industry is India's second-largest employment generator.
  • The Confederation of Indian Textile Industry (CITI) urges government intervention to ensure competitive pricing of raw materials.
  • India's textile exports to the US were valued at $4.59 billion between January and May 2025, a 13% rise from last year.

Gems and Jewellery Sector Impact

  • The Gems and Jewellery Export Promotion Council (GJEPC) anticipates challenges, especially in the loose diamond market due to low margins.
  • 30% of India's gems and jewelry exports, worth $10 billion, go to the US.
  • Tags :
  • Tariff on Indian Goods
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