On August 27, the U.S. activated hefty new tariffs bringing total duties on Indian goods to a staggering 50%. This move applies especially to labour-intensive goods like textiles, gems, jewellery, footwear, furniture, and chemicals. 

The sudden imposition comes after five rounds of unsuccessful negotiations, with India aiming for a capped rate near 15% a request that went unmet. The U.S. cites India’s ongoing purchases of discounted Russian oil as a trigger for the punitive tariffs. 

For exporters, the impact is immediate and harsh. Hundreds of thousands of jobs are in risk, especially in Gujarat, and many small-scale units are already priced out of competitiveness. The seafood industries, for example, plans to shift added costs onto American buyers rather than absorb them. 

In reply, India’s Commerce Ministry is intaking with financial aid packages, push for diversification into new markets, and regulatory support.

Although diplomatic ties are strained, both nations reaffirmed commitments to strategic and defence cooperation, underscoring the complexity of the bilateral relationship. 

Ultimately, this tariff wave raises deep strategic and economic challenges. For many exporters, resilience now depends on agility, government support, and finding fresh markets in an increasingly unpredictable trade environment.