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Trump Tariffs to Hit Manufacturing Sector Hard
The New Indian Express Vellore
|August 09, 2025
Cost differentials of 30-35% to make apparel, leather goods, machinery exports to US unviable
WITH US President Donald Trump doubling down on his tariff war with Delhi, slapping an additional 25% duties on Indian goods shipped to the US shores from August 27, analysts say if India fails to bring down the tariffs through negotiation it will impact the labor-intensive manufacturing sector heavily, thereby shaving off growth.
Ratings agency Moody's on Friday said if India doesn't get tariffs negotiated to a level that is not disadvantageous to its manufacturing competitiveness, it will result in growth losing momentum by 30 bps, leading to 6% GDP growth this fiscal.
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