America imposed 50% heavy tariff from August 27, these areas of India will have a big impact
The US is going to implement 50 percent heavy tariffs on labor -oriented goods such as shrimp, textiles and jewelery imported from India since 27 August 2025. The move will have a serious impact on India’s about half the exports to the US. This tariff will be applicable to most of the total USD 86 billion trade between India and the US. However, some important products such as pharmaceuticals, electronics and petroleum will be free from this tariff. According to PTI news, according to the official announcement of the US government, this new tariff will be effective on August 27 at 12:01 pm (Eastern Daylight Time). Currently, 25 percent of tariffs are already on the goods sent from India to the US, which will now add an additional 25 percent under the ban on purchasing crude oil and military equipment from Russia.
America’s US exports increase by about 20% in July
According to the news, the exporters are calling this heavy tariff “restrictive” and worrying that India’s products will lose their competition in the American market. At the same time, countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia will take advantage of less tariffs and make an edge in the market. Before the tariff grows, some companies are rapidly sending goods to America, the impact of which was seen in the July trade data. India’s US exports increased by about 20% in July, while imports also increased by about 14%. Exports increased by 21.6% from April to July.
Production may have to be stopped
An official of the leather and footwear industry said that this tariff may have to trim the employees and stop production until the proposed bilateral trade agreement between India and the US would have clarified. The agreement aims to increase trade between the two countries from USD 191 billion to USD 500 billion. An exporter of the jewelery industry said that due to the largest market, employment cuts will be mandatory. He said that long -term export strategy, interest subsidy, ease of business, quick withdrawal of GST and SEZ law improvement are necessary to deal with this challenge.
The textile field will be the most affected by this tariff
Mithileshwar Thakur, general secretary of Apparel Export Promotion Council, said that the textile field, which is exported USD 10.3 billion, will be the most affected by this tariff. He reported that the industry could bear the already implemented 25% tariffs, but the additional 25% has almost excluded the Indian textile industry from the US market. According to the Economic think tank GTRI, this new US tariff policy will affect India’s USD 86.5 billion exports. The USD will apply 50% tariff to 60.2 billion labor-intensive products, including textiles, jewelery and shrimp.
Millions of jobs will be in danger
GTRI founder Ajay Srivastava said that this is a major trade setback for India, which will have a huge impact on both competition and employment of labor -intensive areas. In 2025-26, India’s exports to the US can be around 49.6 billion. He informed that while 30% export will not have any tariff, 25% on 4% and 50% tariff will be applicable at 66%. Exports of these areas may decrease by 70%, which will reduce the total exports by 43% and will be in danger of millions of jobs. This will weaken the penetration in the American market of India and affect participation in the global supply chain.
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