🚨 Tariffs and Their Ripple Effect: Which Indian Sectors Are Worst Hit?

Global trade dynamics are never static. The recent 50% tariffs imposed by the US have sparked concern for several Indian export-driven sectors. What matters most is not just the tariff itself but the scale of dependence on the US market.

To assess impact, three factors become crucial:

1️⃣ Export Value – How much is shipped to the US in absolute terms.

2️⃣ Percentage Dependence – Share of the US in the sector’s total exports.

3️⃣ Tariff Hike – The scale of increase from earlier rates.

🔻 Sectors worst hit:

Shrimp 🦐 – $2.4B exports, 32% US dependence, tariff jump from 10% → 60%. Already leading to price crashes domestically.

Gems & Jewelry 💎 – $10B exports, 40% US dependence, tariff jump from 2% → 52%. Surat’s production is slowing, risking over 1.2 million jobs.

Textiles & Apparel 👕 – One-third of exports relied on the US. Now facing a steep tariff increase (13% → 63%), with hubs in Tamil Nadu, Bengaluru, and NCR hit the hardest.

Carpets 🧶 – $1.2B exports, nearly half to the US, now slapped with 52% tariffs.

📉 Consequences:

Unemployment in major hubs.

Price drops in domestic markets due to oversupply.

Export profile imbalance, worsening trade deficit.

On the other hand, chemicals, metals, and machinery face only mild impact since their US export dependence is lower.

💡 Way Forward: Diversification is the key. Reducing over-reliance on a single market like the US by tapping into alternative regions, investing in policy support, and boosting competitiveness under ‘Make in India’ can help India stay resilient.

The bigger lesson: Data isn’t just numbers. It tells us which industries are most vulnerable and why proactive strategy matters more than reactive measures.

#TradePolicy #GlobalEconomy #Exports #IndiaUSRelations #TariffsImpact #EconomicPolicy