How Do US Tariffs Impact India?

US tariffs are taxes imposed by the United States government on imported goods and services. While their stated purpose is to protect domestic industries and discourage excessive imports, they often create ripple effects across global supply chains. For India, which maintains a diverse export base to the US, recent tariff increases have significant implications.

By raising the cost of Indian goods in the US market, these tariffs make Indian exports less competitive against those from countries with lower or no tariffs. The result is a direct impact on several Indian industries—most notably textiles and apparel, gems and jewelry, pharmaceuticals, engineering goods, auto components, and FMCG exports. Understanding these shifts is crucial for businesses, policymakers, and stakeholders alike.