Trump Tariff Blitz On India: From Pharma to Gems, Key Exports Face the Heat

US President Donald Trump has announced a 25% tariff on Indian imports starting August 1, a move that could hurt major Indian industries like pharmaceuticals, electronics, auto parts, textiles, and gems & jewellery, as per an exclusive article by Bloomberg. The tariff hike also comes with a warning of further penalties over India’s continued oil trade with Russia.

Calling India’s trade policies “obnoxious” and its tariffs among the “highest in the world,” Trump made the announcement on Truth Social. This puts India at a disadvantage compared to other regional exporters — Vietnam and Indonesia will face 20% and 19% tariffs respectively, while Japan will see 15%.

The decision has dashed New Delhi’s expectations of favorable trade treatment following Prime Minister Narendra Modi’s White House visit earlier this year. India is estimated to see about 10% of its exports affected during July–September if the tariff exceeds 25%, according to internal estimates made by Bloomberg. 

Also Read: Which Indian Exports Face the Brunt of 25% US Tariffs & Which Might Escape Largely Unhurt? | Republic World

Key Sectors in the Firing Line:

Gems & Jewelry:
India’s exports to the US in this segment top $10 billion annually. The Gem and Jewellery Export Promotion Council warned that the tariff will disrupt supply chains, delay shipments, and inflate costs, threatening jobs and manufacturers across the sector.

Pharmaceuticals:
India is the largest supplier of generic drugs to the US, exporting about $8 billion worth each year. Companies like Sun Pharma, Dr. Reddy’s, and Cipla generate a significant share of revenue from the US. The sector provided $220 billion in healthcare savings to the US in 2022 alone.

Textiles & Apparel:
Indian firms supplying to US giants like Walmart, Costco, and Gap may lose out to competitors in Vietnam and Bangladesh, who already benefit from lower tariffs. The Confederation of Indian Textile Industry called the move a “serious challenge” for exporters.

Electronics:
India recently became a key source for iPhone assembly. Industry analysts warn that the new duties could derail Apple’s shift from China to India if smartphones face the full 25% tariff.

Oil & Refining:
Indian refiners like Reliance and IOC that rely on discounted Russian crude may see margins shrink if pressure mounts to cut energy ties with Moscow. Reliance alone had committed to importing up to 500,000 barrels a day from Russia this year.