Trump’s 50% tariffs come into force, Bengal to be among hardest hit in terms of exports
The Statesman | 28 August 2025
US President Donald Trump’s decision to slap 50 per cent tariffs on most US imports from India came into force on Wednesday, in what is likely to inflict significant damage on the Indian economy and further disrupt global supply chains.
The American leader has claimed that the move is aimed at punishing India for its purchases of discounted Russian oil.
Exporters said shipments and even production are currently on hold. According to trade estimates, the move will impact at least Rs 45,000 crore worth of Indian exports, with West Bengal among the “hardest-hit” states.
The state’s labour-intensive leather, engineering, and marine sectors are expecting losses ahead of the festive season.
West Bengal accounts for 12 per cent of India’s seafood exports, dominated by prawn varieties cultivated in North and South 24-Parganas and Purba Medinipur district.
Experts also predict that out of the current total exports of Rs 8,000 crore to the US from West Bengal, marine shipments worth at least Rs 5,000-6,000 crore from the state are on direct hit.
Santanu Sengupta, chief India economist, Goldman Sachs, also warned that sustained 50 per cent levies could push gross domestic product (GDP) growth below 6 per cent, from a forecast level of around 6.5 per cent. Rival exporters from Turkey to Thailand, facing lower US tariffs, are already scooping up American buyers with offers of cheaper goods.
“About 30 per cent of India’s exports to the US – including pharmaceuticals, electronics, raw drug materials and refined fuels – worth USD 27.6bn, remain duty-free. But sectors like textiles, gems and jewellery, and seafood, long reliant on the American market, face shrinking order books. “At a 50 per cent tariff, it is very difficult to export,” Sengupta said.
In the beginning, Trump had announced a 25 per cent tariff on imports from India, which he increased further by 25 per cent, bringing the total amount of levies imposed on New Delhi to 50 per cent.
Trump signed an executive order imposing an additional 25 per cent tariff on imports from India on August 6 in response to India “directly or indirectly” importing oil from Russia. This was in addition to the 25% tariff on Indian imports he had approved on July 31.
The move has left Indian exporters among those facing the highest US duties Trump has slapped on goods from overseas.
Slamming the ruling government, Congress president Mallikarjun Kharge termed them a result of its superficial foreign policy that would result in huge job losses.
In a post on X, Kharge said, “Narendra Modi ji, your dear friend ‘Abki Baar, Trump Sarkar’ has imposed 50 per cent Tariffs on India starting today. We will lose an estimated Rs 2.17 lakh crore as the first jolt to this Tariff, across 10 sectors alone.”
Noting that “our farmers, especially cotton farmers, have been badly hit”, Kharge said, “You had said you are ready to pay any ‘personal price’ to protect them, but you have done absolutely nothing to soften the blow and protect their livelihoods.”
The US President has accused India of indirectly funding Russia’s war against Ukraine through its purchases of Kremlin crude.
However, in a separate development, External Affairs Minister S Jaishankar called Washington’s demand that New Delhi stop buying Russian crude unjustified and unreasonable.
He also accused the West of hypocrisy, noting that Europe trades far more with Russia. To avoid the extra US tariff, India would have to replace about 42 per cent of its oil imports.