Trump’s Tariffs: Sectors, Jobs At Layoff Risk

The textile, jewelry, shrimp, and handicraft industries will all suffer as a result of US President Donald Trump’s August 27 50% tariff on India.

From 27 August, America imposed an additional tariff of 25% on India. This meant that a total of 50% tax had to be paid on many products exported from India to America. Many major sectors in India suffered huge losses due to this move by US President Donald Trump. The industries that were already struggling with global recession and competition were affected the most.

Which industries are most likely to be impacted?

• Textile (clothing industry): India exports a significant amount of textiles to the United States. However, a 50% tariff rise will raise the cost of Indian goods, allowing American businesses to purchase cheaper items from other nations.
• Jewellery (Jewellery Industry): The higher taxes on gold, silver, and diamond jewelry will have a direct impact on Indian jewellers.
• Shrimp Industry: India is a major exporter of shrimp to the United States. Its demand might decline significantly as a result of the tariff hike.
• Handicraft: The rising cost of goods created by Indian artisans’ labor will have an impact on their sales.

According to GTRI, exports from these sectors may decline by as much as 70%. Thousands of employment could be directly threatened if this occurs.

Which industries are now safe?

The analysis states that the pharmaceutical and electronics industries will not be significantly impacted by Trump’s tariffs at this time. Due to America’s reliance on India in certain areas, they are currently exempt.

Trump raised tariffs, but why?

According to US President Donald Trump, Russia’s actions continue to endanger American foreign and security interests. Russia benefits monetarily from India’s ongoing purchases of its oil. For this reason, the United States chose to use the International Emergency Economic Powers Act (IEEPA) to impose further duties on India.

To what extent does it affect India?

• India has two challenges as a result of this tariff. There will be a setback for export-oriented industries, but there may also be a job crisis.
• Millions of individuals in rural and semi-urban areas are employed in industries like handicrafts and textiles.
• The jewelry and shrimp industries also employ a sizable number of laborers and artists.
• These industries may see layoffs if American demand for Indian goods declines.

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