Trump’s 50% Tariffs on India: Trade Body Urges PM Modi to Hit Back With Retaliatory Duties

As US President Donald Trump’s 50% tariffs on India came into effect on August 27 (Wednesday), the Chamber of Trade and Industry (CTI) has written to Prime Minister Narendra Modi, warning that the move could cripple key export sectors and threaten the livelihoods of lakhs of workers.

The trade body urged the Prime Minister to take a strong stand and consider imposing retaliatory tariffs on American imports.

In a letter, CTI Chairman Brijesh Goyal noted that the steep duty hike would severely impact India’s textile, leather, gems, jewellery and other major export industries.

“India must not fear this pressure. We should cut dependence on US imports while tapping new markets in Germany, the UK, Singapore and Malaysia, where demand for engineering goods is increasing. Counter-tariffs are essential to send a strong message to the US,” he said.

The additional 25% tariff, enforced 20 days after a 25% duty was imposed on August 7, means Indian products that earlier faced just 10% duty are now taxed at 50% in the US market. Goyal pointed out that the move makes Indian goods up to 35% costlier compared to those from competitor nations like Vietnam and Bangladesh.

According to CTI estimates, exports worth over $48 billion (Rs 4 lakh crore) are at stake, including engineering goods that fetched Rs 1.7 lakh crore last year, gems and jewellery worth Rs 90,000 crore, and pharmaceuticals valued at Rs 92,000 crore.
Calling the tariffs a form of ‘economic pressure’, the CTI chairman urged the government to retaliate.

Meanwhile, CTI General Secretaries Radhul Adlakha and Rajesh Khanna flagged concerns among exporters over consignments already shipped or in transit. They said the US government has not provided clarity, leaving businesses in uncertainty.