Tariff's structure will hold the key

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

- Ashwin Ahmad

Economists warned that India's MSME sector-already struggling with 50% tariffs-could face huge job losses.

The focus now will be on how the Trump administration will structure the tariffs. In August, pharmaceutical exports, along with semiconductors and aluminum products, were exempt as Trump launched an additional 25% tariff in August 2025, taking the total tariff on Indian exports up to 50%. So the structuring of the tariff will be a factor, and only once the fine print is understood can New Delhi take action.