Today’s episode of India Tariff News and Tracker brings you the latest on how US trade policy is impacting Indian exporters. As of late November 2025, India continues to face a 50% tariff on a wide range of exports to the United States, a rate that has been in place since August. This is the highest among major trading partners and has hit sectors like textiles, leather, gems and jewellery, engineering goods, and marine products especially hard. The Economic Times reports that Indian exporters are feeling the pinch, with many businesses racing to adapt and the government preparing new support schemes to cushion the blow.
The US imposed these tariffs under what it calls a reciprocal trade framework, citing trade imbalances and a lack of reciprocity. India’s trade-weighted average tariff is 12%, compared to the US rate of 2.2%, which President Trump has repeatedly called out. The 50% rate was announced in April and took effect in August, with the administration warning of additional penalties if India continued to purchase Russian oil. India has maintained its energy policy, and the tariffs remain.
Despite the challenges, India’s economy remains resilient. Fitch BMI has upgraded India’s GDP growth target for the fiscal year ending March 2026 to 6.5%, and the IMF projects growth at 6.6% for FY2025/26, even under the assumption of prolonged 50% US tariffs. The government’s GST reforms and other structural changes are helping to offset some of the negative impacts.
There is cautious optimism among Indian exporters that the US may eventually lower the tariff burden. Organiser reports that there is strong hope President Trump could reduce the rate to between 10% and 17%, which would provide much-needed relief. For now, though, the 50% rate stands, and Indian businesses are exploring new markets and diversifying their export destinations to reduce reliance on the US.
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