Published: 12:27, September 3, 2025
Indian industry starts facing brunt of US 50% tariffs
By Xinhua
Employees stitch clothing material for dresses at the apparel manufacturing unit in Bhiwandi, India's Maharashtra state, on July 30, 2025. (PHOTO / AFP)

NEW DELHI - Several labor-intensive industries in India have begun to face the brunt as exports were drastically hit after US 50 percent tariffs, which came into effect a week ago.

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

Among the labor-intensive industries believed to be majorly hit by the US new tariffs were textiles, gems and jewellery, leather, marine products, and engineering goods.

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According to media reports by private news agency Asian News International (ANI), the thread and knitting industry faced "uncertainty" due to the 50 percent 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 US tax imposition, production has slowed down. If this situation continues, jobs will be at risk."

He reportedly added, "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."

Managing Director of a textile mill Prospper Exports Viswanadan reportedly said, "Due to the 50 percent tax imposed by the US, we are facing a severe impact. We currently export about 10 percent of our production to the US, and it has now become a burden for us. Almost all export manufacturers in Tiruppur are primarily dependent on the US market; everyone is affected."

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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 percent tariff on Indian leather shoes, the footwear industry in northern state Uttar Pradesh's Agra area had come to a standstill. With production, orders, and exports halted, manufacturers warned that the US tariffs were hurting not just Indian exporters, but also American consumers.

"As global competitors step in, India's 20 percent 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.