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On 27 August 2025, the Trump Government raised tariffs on numerous Indian goods by 25% and brought the total tariffs up to 50%. Because of this move, many are concerned about India’s economy and the financial market.
The high US tariffs will affect trade worth billions of dollars and risk Washington-New Delhi ties. In this blog post, we shall discuss the top 10 Indian products impacted by US tariff rates.
The list of top 10 Indian products affected majorly by the US tariffs is provided below:
The products falling in the ‘textile and apparel’ category include sportswear, garments, fibers and yarns, bedding, upholstery, carpets, etc. These products are some of the most affected products by the US tariffs imposed by the Trump Government. The tariff rate for these products is 50%. Previously, the tariff rate for them was 25%.
India's Textiles and apparel exports to the US in FY 2025 were $10.8 billion. Apparels alone account for $5.4 billion in exports to the US. The US accounted for 35% of India’s export of clothing. The hike in tariffs will impact clusters in Tiruppur, Noida-Gurugram, Bengaluru, Ludhiana, and Jaipur. Bangladesh, Vietnam, Mexico, and CAFTA-DR countries are expected to replace Indian suppliers.
This product category includes diamonds, sapphires, emeralds, rubies, semi-previous gemstones, gold jewellery, silver rings, etc. Previously, the products falling under the ‘gems and jewellery’ category were subject to 25% tariff. However, now, a 50% tariff has been imposed on them.
In the gems and jewellery sector, India's exports to the US stood at $10 billion in FY25. Diamonds alone accounted for $7–8 billion. Millions of people are employed in the cutting, polishing, and manufacturing industries in Surat, Mumbai and Jaipur. The doubling of the tariff could potentially result in job losses.
The ‘Leather & Footwear’ category includes leather shoes, boots, sandals, and other footwear. Previously, the tariff rates imposed by the US government on this category was 25% (20.8 – 29.51% for footwear).
Now, this category attracts a tariff of 50% (45.8 54.51% for footwear). The tariff adds strain to a sector that already battles with increasing raw materials cost as well as logistics.
It includes frozen shrimps, fish, cuttlefish, squids, dried items, and live and chilled items. These products were previously subject to a tariff of 33.26% (25% + 2.49% anti-dumping + 5.77% countervailing). However, since the Trump government made the decision to raise tariffs, the marine products attract a tariff of 58.26% (50% + 2.49% + 5.77%).
In FY2025, India's shrimp exports to the US were $2.4 billion, or 32.4% of all shrimp exports. The United States is India's largest market for farmed shrimp, especially those that are peeled, deveined, fried, and breaded.
The organic chemical products are severely affected by more than 50% tariff. Earlier, they were subject to a 25% tariff. With $2.7 billion in yearly exports and a 40% SME share, the Indian chemical industry will face a lot of competition from nations such as South Korea and Japan. These countries enjoy preferential US tariff rates.
The 50% tariff applies to $6 billion worth of Indian exports of tea, spices, basmati rice, and other agricultural items. The tariff puts these agricultural products at a competitive disadvantage to comparable products from countries like Thailand and Pakistan.
India is currently the biggest exporter of basmati rice worldwide, and any increase in US prices could result in a significant decline in market dominance. Processed foods also fall within the high-tariff category.
About 47% of India's auto component shipments to the US, or $3.08 billion in exports, is now subject to a 50% tariff (25% base charge plus an extra 25%), according to the Automotive Component Manufacturers Association (ACMA).
The 25% tariff still applies to the remaining $3.58 billion in exports. According to US Proclamation 10908, which was published on March 26, 2025, this includes parts and components for cars and compact trucks.
Earlier, Indian furniture faced a 25% tariff by the US government. However, now, it faces a 50% tariff. As a result, the buyers in the US might buy furniture from other countries like Vietnam, Bangladesh, etc, that have lower tariff rates. This could negatively affect the Indian furniture industry.
Even rubber items are affected by the latest US tariffs. Earlier, they faced about 25% tariff. However, now they face a 50% tariff. Because of this, preference will be given to the rubber items from those countries that face less tariffs by the US. This could negatively affect the rubber industry in India.
Paper and wood products include cardboard boxes, paper towels, toilet papers, filters, diapers, food casings, etc. Previously, paper and wood products were subject to 25% tariff by the US. But since the increase in tariff rates, paper and wood products attract 50% tariff.
The Trump government imposed tariffs on Indian goods because of India’s continuous purchase of Russian oil. In this blog post, we provided you with the list of top 10 Indian products affected by the US tariffs. They are: (i) textile and apparel, (ii) gems and jewellery, (iii) leather and footwear, (iv) marine products, (v) chemicals, (vi) agricultural products, (vii) auto components, (viii) furniture, (ix) rubber items and (x) paper and wood products. All these products are severely affected by the tariffs. To offer relief to Indian exporters affected by the tariffs, the Indian government has been providing assistance.
Disclaimer: The information provided in this article Top 10 Indian Products Impacted by US Tariff Rates is compiled from multiple publicly available sources. While we have made our efforts to present our readers with accurate and updated details, we do not guarantee the accuracy, reliability or completeness of the information. We advise our readers to verify the facts independently.
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