New Delhi: Prime Minister Narendra Modi’s flagship ‘Make in India’ mission has been dealt a major blow after U.S. President Donald Trump announced punitive tariffs exceeding 50% on a range of Indian exports. The move, aimed at protecting American manufacturing jobs, directly targets labour-intensive sectors such as apparel, carpets, jewellery, and seafood, while sparing pharmaceuticals and smartphones for now.
According to trade experts, the tariff hike could result in a 50–70% decline in demand from the United States, India’s largest export market in several of these categories. “Our shipments to the U.S. are already under pressure from slowing global demand. These tariffs could wipe out margins for exporters entirely,” said a senior official from the Apparel Export Promotion Council.
Industry bodies have urged the Centre to initiate dialogue with Washington and consider alternative markets in Europe, Africa, and West Asia to cushion the blow. The development comes at a time when India has been working to diversify its export basket under the Production Linked Incentive (PLI) scheme.
Trade analysts warn that without urgent government intervention, the tariff move could derail employment in export hubs such as Tiruppur, Surat, Moradabad, and Panipat, where lakhs of jobs depend on these industries.