Exports of organic chemicals, apparel, jewellery, shrimp may decline 50-70% due to Donald Trump tariff: GTRI
The think tank GTRI has indicated that 50% tariff imposition on Indian goods by US may cause 50% to 70% declined in exports of nine product categories, including organic chemicals, apparel, jewellery and shrimp. US President Donald Trump has slapped an additional 25% tariff on India, raising the total duties to 50% on Indian exports to US, as a penalty for India’s continued purchase of Russian oil. The 50% duty will come into effect from August 27. These tariffs came on top of the usual US import duties, called Most Favoured Nation (MFN) tariffs. GTRI marked the US’ decision to make India one of the most heavily taxed US trading partners as worst than US imposing 30% tariffs on China and 20% tariffs on Vietnam.
GTRI, in its analysis, has categorised exports of nine product categories as very high impact sectors which may get affected by 50% to 70%. These product categories include organic chemicals, carpets, knitted and woven apparel, made-ups, diamonds, gold and jewellery, machinery and mechanical appliances, furniture and bedding, and shrimp. Further, exports of steel, aluminium, copper, and auto parts have been categorized as high-impact segment goods and their exports may decline by 30% to 50%. Finally, low or no impact areas are pharmaceuticals, smartphones, and petroleum products.
It highlighted that India exported $2 billion worth of shrimps to the US in FY2025, accounting for 9.52% of total US shrimp imports. Meanwhile, it noted that these shrimps now face a 50% tariff, an antidumping duty and a countervailing duty of about 10%, and face risk losing significant ground to lower-taxed competitors like Chile. It also noted that India had exported organic chemicals worth $2.7 billion to the US in FY2025, holding a 5.11% market share, and now these exports face a 54% total tariff which includes 4% MFN plus 50% Trump tariff. Moreover, India is the largest exporter of carpets to the US, with a 35.48 per cent market share and $1.2 billion in export value, now faces 52.10% tariff duty. Additionally, it has raised concerns of these tariffs derailing country’s growth in advanced manufacturing exports.
