Say It Ain’t So: Why Slam India With Such High Tariffs?

Washington’s tariff approach isn’t new, but President Trump’s move to slap a 50 percent duty on Indian goods caught both New Delhi and Wall Street off guard. The administration says the hike targets India for buying discounted Russian crude, a deal Trump argues breaks his “reciprocal trade” rule. The extra 25 percent surcharge, announced on Aug. 7, stacks onto a previous 25 percent already in place. The 50% is added on top of the current MFN rate. For apparel, this pushes tariffs to over 60%, making them prohibitively high.

As a result, India is now one of the most heavily tariffed U.S. trading partners, even surpassing China.

However, looking beyond the talking points reveals a political motive. Trump seeks a headline-making victory before the mid-term cycle heats up, and India’s $52 billion in Russian oil imports provided a convenient target. The message: tough on Moscow, protective of U.S. factories, and a warning to Beijing. With India hung out to dry.

The Tariff Bombshell

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India ships about $87 billion in goods to the United States each year. Roughly half of that is hit by the new duty, raising costs by 25–50 percent overnight. Textile and apparel makers, already surviving on thin margins, face immediate pressure. Some U.S. buyers want suppliers to split the tariff bill; others are diverting orders elsewhere.

The industry in Tiruppur, India’s knitwear hub, was optimistic this spring, betting on lower tariffs than Vietnam or China to boost U.S. sales. Now, confidence has shifted to anxiety. Large exporters are exploring production space in Vietnam, Bangladesh, Guatemala, and elsewhere to keep orders going.

I’ve read some reports claiming that the average U.S. household will pay about $175 more each year, mostly on clothing, jewelry, and low-end furniture, thanks to higher tariffs. Apparel prices have already outpaced headline inflation since January, and retailers warn of more markdowns heading into the holidays. Yikes.

Can Donald and Narendra Still Dance?

Trump’s Executive Order provides a 21-day period before the second 25-point tranche begins. In other words, it’s Trump’s way of saying, “bring us an offer.” Washington wants India to cut Russian oil imports and open long-blocked doors for U.S. dairy, poultry, and e-commerce companies. Negotiators are scheduled to meet in New Delhi on Aug. 25, aiming for a deal that reduces the tariff in exchange for quotas or market access.

In turn, Modi can’t seem to be giving in to Washington during an election year, but India’s exporters can’t sustain a duty of over 50 percent for long. New Delhi’s initial response—no retaliatory tariffs, just a promise to “protect national interests”—did not raise the stakes and has helped keep both countries talking.

Indeed, Indian officials are developing export-credit subsidies and loan guarantees to assist small manufacturers. Meanwhile, India suggests it might reduce Russian crude imports if Washington restores some duty relief and reestablishes long-lost GSP benefits.

Both leaders need solutions. Trump aims to announce a “fair deal” before the October debates; Modi seeks better access to the U.S. market to reach his $1 trillion export goal. Expect tough words in public and tough negotiations behind the scenes, likely ending—if history is any guide—in lower tariffs and mutual bragging.

Textiles and Apparel: Collateral Damage or Catalyst?

Apparel best tells the story. India shipped about $16 billion worth of clothing to the United States last year, mainly cotton knits and home textiles. With duties now 30 percent higher than Vietnam’s and 20 percent above Bangladesh’s, India’s price advantage vanishes. Industry estimates already forecast a 20 percent drop in U.S. orders this quarter.

Also Read: Global Trade & Market Update 2025: Tariffs, Trade Shifts, and Sustainability Pressures

Premium segments—performance wear, technical fabrics, licensed athleisure—may remain with India due to strong compliance records and quick turnaround times. Commodity basics will seek lower duties. Mass-market T-shirts, socks, and underwear are suddenly at risk, just as new automated capacity becomes available in India. U.S. buyers are considering split-sourcing, finishing goods in Mexico to avoid tariffs.

Tariffs make headlines, but supply chain details are often overlooked. Trump’s 50 percent tariff stirred Indian exporters and excited political strategists, yet global apparel supply chains are already adjusting. Consumers will soon face higher prices. Washington and New Delhi have a clear choice: reach a quick agreement or suffer slow damage.

In my view, chances favor a negotiated reduction to the 15–20 percent range by late September. If that occurs, India maintains a strong presence in American closets. If negotiations fall apart, prepare for canceled orders in India and a surge for factories elsewhere. Either way, the lesson remains: tariffs are easy to announce, difficult to live with, and politics always outruns economics. That is, until the bill arrives.

About the Author

Robert Antoshak, Vice President of Global Strategic Sourcing & Development at Grey Matter Concepts, brings over 30 years of experience in the textile and apparel sector. He has advised governments, led consulting projects worldwide, and written extensively on global trade, sustainability, and sourcing. Previously a Partner at Gherzi Textil Organisation, he continues to shape industry perspectives through his articles and thought leadership.

Antoshak is a regular contributor to just-style.com and sourcingjournal.com.