India’s commerce ministry has estimated that about 55 per cent of Indian goods sent to the United States may face higher import duties if Donald Trump’s proposed tariff policy is introduced. This is a major blow to India-US trade.
The plan, outlined during Trump’s election campaign, aims to apply a flat 10 per cent tariff on all imports to the us, with certain countries potentially facing even steeper rates. for India, this would affect a broad range of products such as textiles, machinery, leather goods, and pharmaceuticals.
The Future of 120 Billion Dollars India-US Trade
India remains one of the US’s major trading partners, with bilateral trade exceeding 120 billion dollars last year. exporters worry that higher tariffs could make Indian goods less competitive, reduce demand from American buyers, and put pressure on jobs in export-reliant industries.
Small and medium-sized businesses are seen as the most vulnerable, as they already face high production costs and fluctuating shipping expenses. trade experts say the proposed policy could also strain india-us relations, particularly when both countries have been working to strengthen economic and strategic cooperation.
Officials in new Delhi have signalled that they will monitor developments closely and explore options to safeguard trade, including diversifying export markets and holding discussions with Washington if the policy moves forward.
Published in SouthAsianDesk, August 11th, 2025
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