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 Indian industry facing brunt of U.S. 50% tariff

Viswanada requested both the central and state governments to come together and find a solution.

• September 3, 2025
Indian flag
Indian flag [Credit: The Economic Times]

Several labour-intensive industries in India have begun to face the brunt as exports were drastically hit after U.S. 50 per cent tariffs, which came into effect a week ago, local media reports.

 The Donald Trump administration imposed 25 per cent additional tariffs on Indian goods after the South Asian nation chose to continue purchasing Russian oil, thus bringing the total levies to 50 per cent.

 According to the report, the labour-intensive industries believed to be majorly hit by the U.S. new tariffs were textiles, gems and jewellery, leather, marine products, and engineering goods.

The report said the thread and knitting industry faced “uncertainty” due to the 50 per cent tariffs imposed by the United States.

It quoted a worker named Thangaraj at a knitting factory in Tiruppur area in the southern state Tamil Nadu as saying, “I have been working in Tiruppur for the past 10 years. At present, due to the U.S. tax imposition, production has slowed down. If this situation continues, jobs will be at risk.”

 “As far as Tiruppur is concerned, if one leaves this industry, there is no other alternative employment. Therefore, I request the central and state governments to take appropriate action immediately.”

 The managing director of a textile mill Prospper Exports Viswanadan reportedly said, “Due to the 50 per cent tax imposed by the U.S., we are facing a severe impact.

 “We currently export about 10 per cent of our production to the U.S., and it has now become a burden for us. Almost all export manufacturers in Tiruppur are primarily dependent on the U.S. market; everyone is affected.”

 Requesting both the central and state governments to come together and find a solution.

  The textile manufacturer and exporter said, “It would be very helpful if we were provided with interest-free loans.”

 Another media report said after the United States imposed a 50 per cent tariff on Indian leather shoes, the footwear industry in northern state Uttar Pradesh’s Agra area had come to a standstill.

 The production, orders, and exports halted, manufacturers warned that the U.S. tariffs were hurting not just Indian exporters, but also American consumers.

 “As global competitors step in, India’s 20 per cent market share is at risk in the highly competitive leather export market,” added the report.

Agra is one of the shoe-manufacturing hubs in north India.

(Xinhua/NAN)

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