Trump’s Tariffs Will Crush India’s Exporters, Millions of Jobs at Risk

Indian exporters are bracing for a major setback after U.S. President Donald Trump announced new tariffs on Indian goods. The existing 25 percent tariff will double to 50 percent from August 27. The sudden hike has created fear of massive job losses and economic slowdown in several industries.

Carpet makers in Bhadohi, Uttar Pradesh, say survival has become impossible. “We managed with 25 percent, but 50 percent is beyond reach,” said Ishtiaq Ahmad Khan, a fourth-generation exporter. He warned that nearly 2.5 million workers in the carpet belt could fall into poverty. About 98 percent of Indian carpets are sold abroad, with the U.S. being the largest buyer.

The problem is not limited to carpets. Textiles, garments, shrimp farming, and furniture exports are also under threat. These industries are labor-intensive and provide income to millions of families. A $500 handmade rug now costs American buyers at least $750 with the new tariffs.

India’s gem and jewelry sector also faces uncertainty. The U.S. accounts for nearly 30 percent of the global demand for Indian gems. Kirit Bhansali, chairman of the industry body, said the tariffs could devastate the market, giving countries like Turkey and Thailand a huge advantage.

Prime Minister Narendra Modi addressed the nation on Independence Day, hinting at challenges without naming Trump directly. He called for self-reliance, saying, “The greater a nation’s reliance on others, the more its freedom comes into question.” Economists, however, fear this move could push India away from free trade policies that have fueled growth in recent decades.

Farmers and rural workers who depend on carpet weaving as side income may face the harshest impact. Many earn only $170 a month from weaving, which supports their children’s education and household needs. Without exports, families could be forced to survive only on government food rations.

For now, India has no clear plan to shield exporters. State governments have been asked to handle the crisis, but business leaders say more support is needed. Experts warn that unless both governments find a solution, India’s export economy could face its worst setback in years.