Trump’s 25% tariff hit triggers layoff warning from exporters

US President Donald Trump on Friday formally imposed a sweeping 25 per cent import tariff on Indian goods, sparking fears of mass layoffs among exporters, especially in the textiles sector. Though the anticipated “penalty” tied to India’s purchases from Russia was absent, the tariff hike placed Indian exporters at a disadvantage compared with regional peers such as Bangladesh, which secured a lower 20 per cent rate from Washington. According to a White House executive order, the new tariffs are set to come into effect from August 7 and will be imposed over and above the existing World Trade Organization-compliant tariffs, except for a special concession granted to the European Union. The list excluded China, which will continue to attract a 30 per cent tariff. The presidential order listed higher import duty rates ranging from 10 per cent to 41 per cent for 69 trading partners, increasing the US’ effective tariff rate to about 18 per cent, up from 2.3 per cent last year, according to Capital Economics. Indian goods shipped before August 7 and arriving in the US by October 5 will pay the baseline 10 per cent tariff on most products, Delhi-based think tank the Global Trade Research Initiative (GTRI) said quick estimates suggest that India’s goods exports may fall by 30 per cent, from $86.5 billion in FY25 to $60.6 billion in FY26. Commerce and Industry Minister Piyush Goyal is likely to meet exporters in Mumbai on Saturday and Sunday. India faces higher tariffs than most nations, as New Delhi and Washington failed to finalise an interim trade agreement before the August 1 deadline. With US President scotching hopes of tariff relief for Indian goods by imposing a 25 per cent levy and an additional penalty, logistics players are having to realign their supply chain plans in an increasingly volatile period for the maritime economy. Even though the situation seems tricky for Indian exporters and freight forwarders, it is “manageable,” said the president of a freight forwarding association.