India Braces for Economic Impact of New US Tariffs
India Braces for Economic Impact of New US Tariffs
IN · Published Aug 8, 2026
The United States has imposed new tariffs ranging from 10 to 12.5 percent on goods from 60 trading partners, including India, under Section 301 of the 1974 US Trade Act.
The tariffs, effective since late July, target countries accused of failing to ban imports made with forced labor.

Impact & Risks

The new tariffs could significantly affect India's export-driven industries, particularly those with thin profit margins such as textiles and jewelry. This may lead to reduced export revenues and job losses in labor-intensive sectors. Additionally, the tariffs could strain India-US trade relations and create challenges in finding alternative markets for affected goods. However, the impact on Indian consumers is expected to be minimal unless retaliatory measures are taken.

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