Trump’s 25% tariff on India: Top 5 Indian products that will suffer maximum loss, check full list

U.S. President Donald Trump has hit India with a major trade move after he announced a 25 per cent import tax (tariff) on goods coming from India. He has also added penalties for India’s purchases of Russian oil and defence equipment. This announcement comes just before the August 1 deadline and could affect several sectors of the Indian economy.

India has been America’s biggest trading partner since 2021. In the financial year 2024–25, the total trade between the two countries reached USD 186 billion. India exported goods worth USD 86.5 billion to the U.S. and imported USD 45.3 billion worth of goods.

Though India has reduced tariffs on items like whisky and motorcycles, Trump is still pushing to further cut down the U.S. trade deficit with India that is, the gap between what the US buys from India and what it sells to India.

What Indian products might be affected after US tariff?

India is known around the world for its IT and IT-enabled services. But Trump’s tariffs may not directly hurt this sector, since it’s mostly service-based. However, exports of smartphones, electronics, and components could take a hit. In recent years, India’s smartphone exports have grown rapidly, even beating traditional exports like petroleum products and diamonds.

So, while tech services may stay safe for now, India’s fast-growing electronics and smartphone industries could feel the pressure from this new U.S. tariff policy.

Top Indian exports likely to be hit by Trump’s 25 per cent tariff

Smartphones

One of the biggest exports from India to the U.S. right now is smartphones, especially Apple iPhones, which are now being assembled in India. In fact, India has even surpassed China in exporting iPhones to the U.S.

  • In FY 2025, India exported $24.1 billion worth of smartphones to the U.S.
  • That’s a 55 per cent increase compared to the previous year.
  • Because of this huge volume, smartphones could be the hardest hit by the new 25% tariff.

Pharmaceutical Products

The second-biggest export from India to the U.S. is pharmaceuticals, including generic medicines.

  • In FY 2025, India exported about $10 billion worth of pharma products to the U.S.
  • This makes up nearly 31–35 per cent of India’s total pharma exports.
  • If these products are not excluded from the tariff hike, there could be a shortage of affordable medicines in the U.S., leading to higher prices for American consumers.

Textiles and Apparel

Next in line is India’s textile and garment industry, which is heavily dependent on exports to the U.S.

  • In FY 2025, India exported around USD 10.8 billion worth of clothing and apparel to the U.S.
  • This accounts for about 28 per cent of India’s total textile exports.
  • Currently, the U.S. charges a 10–12 per cent import duty on these goods.
  • An extra 25 per cent tariff would deal a major blow to Indian garment exporters, making their products much more expensive and less competitive in the U.S. market.

Gems and Jewellery

India exports a large amount of gems and jewellery to the U.S., especially diamonds and gold ornaments.

  • In FY 2025, India exported around USD 12 billion worth of gems and jewellery to America.
  • The U.S. accounts for about 30 per cent of India’s total exports in this category.
  • Currently, these products already face a 27 per cent tariff in the U.S.
  • Adding another 25 per cent on top of that could badly hurt profit margins and reduce overall demand, making it much harder for Indian exporters to stay competitive.

Auto Parts

India also exports a good amount of auto components like engine parts, brakes, and electrical systems to the U.S.

  • In 2024, India exported nearly USD 2.2 billion worth of auto parts to America.
  • The export of fully built vehicles was much smaller around USD 10 million but parts remain a strong segment.
  • The 25 per cent tariff could directly impact exports in this sector, making parts from India more expensive in the U.S. market.
  • This could also negatively affect India’s broader engineering goods industry, which is a key part of the government’s ‘Make in India’ export strategy.

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