Trump's 25% Tariff Threat Puts $87 Billion in Indian Exports at Risk

India's $87 billion export pipeline to the US is facing fresh turbulence after President Donald Trump proposed a 25% reciprocal tariff on Indian goods, escalating trade tensions just days before a pause on such duties is set to expire.

- Dhirendra Kumar

The move threatens to disrupt sectors ranging from textiles and electronics to pharmaceuticals and auto parts.

While details of the proposed tariffs are yet to emerge, Trump's statement, issued on Wednesday, has unsettled markets and cast a shadow over India's near-term export outlook. A US delegation is scheduled to visit India on 25 August for bilateral trade talks, but the final contours of the measures remain unclear.

The Indian government is analysing the potential impact of the 25% tariff on exporter losses in terms of value and outbound shipments, the ministry of commerce said in a statement issued on Wednesday.