{"id":"f-ebdaa7ae0c-dd6a274e-688f-5bb3-987b-4b870d65fe60","title":"Shock In India As Trump Backs Bill Proposing 500% Tariff On Exports To US","description":"","timestamp":1767938899,"category":"national_v_two","headline":"Shock In India As Trump Backs Bill Proposing 500% Tariff On Exports To US","modifiedHeadline":"Trump Backs 500% Tariff On Indian Exports","subCategories":["scid_2c0dc4ac"],"region":"IN","bundleMetaData":{"bundleId":"7b48871c-c993-4956-b43d-6f46f8e1b036","bundleTitle":"Today In India","cardData":null},"iabCategoryId":"81","fcSummary":"US senator's announcement of a potential 500% tariff on Indian exports to the US has sparked concerns in India. Economists warn of job losses in the MSME sector and potential export losses of $7-10 billion. The US may be using tariffs to push India to buy more American crude oil.","summary":"India reels as Trump's tariff proposal threatens exports with a shocking 500% hike, sparking economic fears and trade war anxieties.","ctaUrl":"https://trends.glance.com/newz/India_News/IN/en/freepressjournal/f-ebdaa7ae0c-dd6a274e-688f-5bb3-987b-4b870d65fe60","sourceUrl":"https://www.freepressjournal.in/india/shock-in-india-as-trump-backs-bill-proposing-500-tariff-on-exports-to-us/glance","bannerImage":"https://g-mob.glance-cdn.com/public/fc/image/ZbjtnaNhZAN0.webp","content":"

Indians reacted with shock after US Senator Lindsey Graham announced that President Donald Trump had green-lighted a Bill allowing a 500% tariff levy on Indian exports to the United States.

MSMEs, Jobs

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at Risk

Economists warned that India’s MSME sector already under strain due to tariffs of up to 50% could face severe job losses if the proposed levy is implemented.

Tariff Structure Key to Impact

The focus now will be on how the Trump administration structures the tariffs. In August 2025, pharmaceutical exports, along with semiconductors and aluminium products, were exempt when the US imposed an additional 25% tariff, taking the overall levy on Indian exports to 50%. Analysts say New Delhi can respond meaningfully only after examining the fine print.

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Export Losses Could Reach $10 Billion

Sankhanath Bandyopadhyay, economist at Infomerics Valuation and Ratings, said exports of gems and jewellery, marine products, pharmaceuticals, electronics and steel sectors heavily dependent on the US market could suffer significant losses. “If tariffs are reinstated or raised, Indian exporters could face losses of $7–10 billion,” he said.

Limited Policy Options for India

Economists note that approaching the WTO may offer little relief, as setting up a committee could take over a month and Trump is unlikely to comply with any ruling.

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US Crude Purchases as a Bargaining Chip

Suranjali Tandon, Associate Professor at the National Institute of Public Finance and Policy (NIPFP), believes the US wants India to buy more American crude. She pointed out that similar steps by the EU helped ease tensions with Washington.

Constraints on Buying US Oil

India has already increased US crude imports. Data from the Ministry of Commerce and Industry show that between April and November 2025, India imported 178.1 million tonnes of crude, including 13 million tonnes from the US a 92% year-on-year rise. However, energy experts caution that Indian refineries are better suited to Russian and Middle Eastern crude, limiting how much US oil India can absorb. Any major shift would take time and investment.

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Shock In India As Trump Backs Bill Proposing 500% Tariff On Exports To US

SUMMARY