Can a 50% US tariff rewrite India’s export story?

In August 2025, the US imposed a historic 50% tariff on Indian imports, the highest among all its trading partners. With $60.2 billion worth of trade at risk and over 2 million jobs on the line, India’s MSMEs, especially export-heavy sectors like textiles, and chemicals, are facing an unprecedented challenge.

This article examines the economic disruption of the tariff shock, the human cost behind the numbers. It explores how New Delhi is responding, from relief measures and credit support to trade diversification and fast-tracked FTAs, and whether the policy response can transform this crisis into a catalyst for long-term resilience.

Read on to discover the full impact and what the future holds for the country’s exports.

Credits:
Head – Kumari Janawi
Research – Ayush Negi
Design – Smarth Singh