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Trump has blown it. The hard work by the two countries to build a solid strategic relationship is at risk
The Guardian
|August 28, 2025
Senior Indian trade official
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jewellery face shrinking order books. "At a 50% tariff, it is very difficult to export," Sengupta said. The effects are already visible. The Federation of Indian Export Organisations (FIEO) reported that textile and apparel manufacturers in Tirupur, Delhi and Surat had already halted production due to "worsening cost competitiveness".
"Indian goods have been rendered uncompetitive compared to competitors from China, Vietnam, Cambodia, the Philippines and other south-east and south Asian countries," said the FIEO's president, SC Ralhan.
Indian shares tumbled ahead of the tariffs, with the benchmark BSE Sensex dropping 1%, or 849 points, to 80,876 in Mumbai on Tuesday.
Even if the tariff row eases, trust in future relations with Washington is probably the biggest casualty.
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