The Chamber of Trade and Industry (CTI) has written to Prime Minister Narendra Modi warning that the steep 50 per cent tariffs imposed by the United States could have a devastating impact on a wide range of domestic industries.
“The 50 percent US tariff will severely hit India’s textiles, leather, gems and jewellery, auto components, chemicals, pharmaceuticals, seafood, electronics and several other sectors,” CTI chairman Brijesh Goyal said.
Goyal noted that the increased duties would make Indian goods about 35 percent costlier in the US market compared to rival suppliers, potentially deterring buyers.
According to CTI, the tariffs —25 percent as “reciprocal tariffs” and an additional 25 percent as “punishment” for India’s purchase of Russian crude—could affect more than $48 billion worth of exports.
Engineering goods, which recorded exports of ₹1.7 lakh-crore in 2024, are expected to be among the hardest hit, while gems and jewellery shipments worth ₹90,000 crore and the fast-growing electronics segment are also under “severe threat.”
In the pharmaceutical sector, exports valued at ₹92,000 crore in 2024 will face a significant setback. Medicines that had previously entered the US duty-free will now attract a 50 percent tariff, placing Indian producers at a disadvantage to competitors such as Vietnam. As a result, costs for US consumers are also expected to rise sharply.
Goyal urged the government to respond firmly to Washington, including through retaliatory measures.
“India must not yield to this pressure. We should impose counter-tariffs on American goods, cut dependence on US imports, and expand into new markets such as Germany, the UK, Singapore and Malaysia, where demand for engineering goods is rising. We must teach the US a lesson,” he wrote.
He also pressed for reducing reliance on US imports of aircraft equipment, chemicals, metals, minerals, plastics and precious stones.
CTI general secretaries Rahul Adlakha and Rajesh Khanna added that India’s exports to the US comprise 53 percent pharmaceuticals, 53 percent textiles and apparel, 37 percent gems and jewellery, 28 percent auto components, 13 percent chemicals and 22 percent seafood.
The industry body further pointed to widespread confusion among traders over whether the new tariffs would apply to consignments already shipped or in transit, with no clarity forthcoming from Washington.
(By arrangement with livemint.com)