Listeners, fresh headlines this week signal a dramatic escalation in US-India trade tensions, with the Trump administration enacting some of the highest tariffs ever recorded on Indian exports. According to Outlook Business, as of September, the US has imposed a punitive 50% tariff on many Indian goods, doubling the previous duty and pushing total trade barriers from 13.9% to a staggering 63.9% on key shipments. This move has delivered a sharp blow to India’s leading labor-intensive sectors, especially textiles, apparel, leather, footwear, handicrafts, and seafood. This is of particular concern as India’s apparel exports to the US alone reached $5.4 billion last year, accounting for 35% of India’s global apparel shipments. The steep tariffs have, in effect, nearly shut Indian garments out of what was their largest and most lucrative foreign market.

The pain felt by Indian industry is now reverberating through the broader economy. Rajiv Jain, former chairman of the Gem and Jewellery Export Promotion Council, notes that what is usually the busiest quarter for exports has suddenly gone quiet, with many manufacturers running below capacity or idling, unable to pass massive tariff surcharges on to buyers. The comparison is particularly stark: Indian goods now face a 50% US import duty, while similar products from Vietnam or other competing nations face only 20–30%, effectively making Indian products twice as expensive and uncompetitive overnight.

Further complicating India’s trade position, the White House announced on October 17 that starting November 1, 2025, imported medium- and heavy-duty trucks and automotive parts will be subject to an additional 25% tariff. Passenger buses will see a 10% tariff. These sector-specific hikes are the result of a Section 232 investigation, and while Mexico and Canada are the largest exporters affected, India’s manufacturing sector will also feel the pinch if it seeks to enter the US commercial vehicle market, especially with pressure growing on global supply chains.

While reports from RILA discuss a flurry of new US trade deals and strategic moves in Asia that may alter tariff landscapes, the near-term effect has been a hardening of tariff walls, particularly on Indian goods. The Economic Times adds that, alongside steep consumer goods tariffs, there is a continuing 25% US duty on crude imports from Russia to India, adding further friction to India’s economic outlook.

Listeners, the tariff environment for Indian exporters to the US is now among the toughest seen in decades, rapidly re-shaping global competitiveness, business strategies, and the livelihoods of millions of Indian workers. Stay tuned for further analysis and interviews in upcoming episodes as this situation evolves.

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