{"id":345383,"date":"2025-08-29T18:04:45","date_gmt":"2025-08-29T12:34:45","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=345383"},"modified":"2025-08-29T18:04:45","modified_gmt":"2025-08-29T12:34:45","slug":"sectors-worst-hit-by-u-s-tariffs-on-india","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/sectors-worst-hit-by-u-s-tariffs-on-india\/","title":{"rendered":"Sectors worst hit by U.S. tariffs on India"},"content":{"rendered":"<p><strong>News<\/strong><strong>: <\/strong>U.S. 50% tariffs on Indian imports began on August 27, triggering demand drops in several labour-intensive export sectors.<\/p>\n<h2>Sectors Worst Hit by U.S. Tariffs on India<\/h2>\n<figure id=\"attachment_345385\" aria-describedby=\"caption-attachment-345385\" style=\"width: 378px\" class=\"wp-caption aligncenter\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\" wp-image-345385\" src=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?resize=378%2C208&#038;ssl=1\" alt=\"\" width=\"378\" height=\"208\" srcset=\"https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?resize=300%2C165&amp;ssl=1 300w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?resize=1024%2C563&amp;ssl=1 1024w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?resize=768%2C422&amp;ssl=1 768w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?resize=1536%2C845&amp;ssl=1 1536w, https:\/\/i0.wp.com\/forumias.com\/blog\/wp-content\/uploads\/2025\/08\/Source-TH-5.jpg?w=1569&amp;ssl=1 1569w\" sizes=\"auto, (max-width: 378px) 100vw, 378px\" \/><figcaption id=\"caption-attachment-345385\" class=\"wp-caption-text\">Source &#8211; TH<\/figcaption><\/figure>\n<p><strong>Mechanism of assessing impact: <\/strong>We can judge impacts by <strong>three signals used together<\/strong>:<\/p>\n<ol>\n<li><strong> Dollar sales to the U.S.<\/strong> (how big the market is),<\/li>\n<li><strong>U.S. share in a sector<\/strong><strong>\u2019<\/strong><strong>s total exports<\/strong> (how dependent it is),<\/li>\n<li><strong>The new final tariff<\/strong> (how steep the price penalty is).<\/li>\n<\/ol>\n<ul>\n<li>When <strong>all three are high<\/strong>, the impact is <strong>severe<\/strong>; when <strong>U.S. share is small<\/strong>, the impact is <strong>limited<\/strong>.<\/li>\n<\/ul>\n<p><strong>Sectors facing severe impact<\/strong><\/p>\n<ul>\n<li><strong>Shrimp:<\/strong> India exports $2.4 billion worth of shrimp to the U.S.\n<ul>\n<li>It is about one-third of total shrimp (32.4%).<\/li>\n<li>Tariffs increase from 10% to 60%.<\/li>\n<li>Andhra Pradesh is going to face a severe impact.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diamonds, gold, jewellery:<\/strong> It accounts for $10 billion of exports India&#8217;s exports to the U.S.\n<ul>\n<li>It is about two-fifths (40%).<\/li>\n<li>Final tariffs now, 52.1%<strong>. <\/strong><\/li>\n<li>Production cuts reported in hubs like Surat; its polishing industry employs ~12 lakh people.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Textiles &amp; apparel:<\/strong> India has $10.8 billion of exports to U.S; with apparel exports of $5.4 bn.\n<ul>\n<li>U.S. is <strong>35%<\/strong> of India\u2019s apparel exports.<\/li>\n<li>Final tariffs now is 63.9%( <strong>9%+ 50%). <\/strong><\/li>\n<li><strong>This will impact Indian cities such as Tiruppur, Noida\u2013Gurugram, Ludhiana, and Bengaluru.<\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Carpets:<\/strong> India exports $1.2 billion worth of carpets to the U.S.\n<ul>\n<li>India has <strong>high dependence<\/strong> on U.S. (~<strong>58.6% of total carpet exports<\/strong> ).<\/li>\n<li>Tariffs increase from <strong>9% to 52.9%<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Also hit:<\/strong> handicrafts; leather and shoes; furniture and bedding; basmati rice, spices, tea, pulses, sesame.<\/li>\n<\/ul>\n<p><strong>Sectors with modest impact<\/strong><\/p>\n<ul>\n<li><strong>Organic chemicals:<\/strong> Indai has $2.7 billion worth of exports.\n<ul>\n<li>It is about one-eighth of total organic chemical export (13.2%).<\/li>\n<li>Tariffs increase from <strong>4% to 54%. <\/strong><\/li>\n<\/ul>\n<\/li>\n<li><strong>Metals (steel, aluminium, copper):<\/strong> India has $4.7 billion worth of exports to U.S.\n<ul>\n<li>It is about one-sixth (17%).<\/li>\n<li>Global Trade Research Initiative (GTRI) warns of risks to SMEs and jobs in stainless steel, aluminium casting, copper semi-finished goods.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Machinery &amp; mechanical appliances:<\/strong> India has $6.7 billion worth of exports.\n<ul>\n<li>It is about one-fifth (20%).<\/li>\n<li>Demand expected to ease.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Government response<\/strong><\/p>\n<ul>\n<li>Leaders reiterate \u2018swadeshi\u2019 and \u2018go vocal for local\u2019.<\/li>\n<li>A multi-ministry plan (reported August 13) aims to ease short-term exporter pain.<\/li>\n<li>Medium-to-long term: diversify markets and use FTAs better;<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: U.S. 50% tariffs on Indian imports began on August 27, triggering demand drops in several labour-intensive export sectors. Sectors Worst Hit by U.S. Tariffs on India Mechanism of assessing impact: We can judge impacts by three signals used together: Dollar sales to the U.S. (how big the market is), U.S. share in a sector\u2019s&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/sectors-worst-hit-by-u-s-tariffs-on-india\/\">Continue reading <span class=\"screen-reader-text\">Sectors worst hit by U.S. tariffs on India<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,164,12039],"tags":[11872],"class_list":["post-345383","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-international-relations-daily-factly-articles","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/345383","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=345383"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/345383\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=345383"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=345383"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=345383"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}