• Dr. Ayush Agarwal

Tariffs imposed by the United States on Indian goods have become an important issue in India's international trade relations, with significant implications for export competitiveness, industrial production, employment and bilateral economic cooperation. The tariff measures introduced in 2025, followed by subsequent changes in 2026, created uncertainty for Indian exporters, particularly in labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, and selected engineering products. The situation has evolved through several policy changes. In April 2025, the United States announced reciprocal tariffs on imports from trading partners, including India. In August 2025, an additional tariff linked to India's purchases of Russian oil raised the announced tariff burden on many Indian goods to 50%. A subsequent framework announced in February 2026 proposed an 18% reciprocal tariff rate for specified Indian-origin goods. In July 2026, a separate U.S. measure introduced an additional 10% duty on a defined range of imports from India, with exemptions covering several important product categories. These measures have different legal bases and product coverage and should not be treated as a single, continuously applicable tariff rate. This paper examines the evolution of U.S. tariff policy towards India, the economic channels through which tariffs affect Indian businesses and consumers, the sectors most exposed to trade barriers, and the potential consequences for economic growth, employment, foreign exchange earnings and investment. It also evaluates India's policy options, including export-market diversification, improvements in productivity, trade negotiations and support for small and medium-sized enterprises. The paper concludes that the overall effect of U.S. tariffs depends on the applicable duty for each product, the duration of the measures, exemptions, competing countries' tariff treatment and exporters' ability to adapt. Reliable assessment therefore requires product-level tariff data and comparison of export performance before and after each policy change.

U.S. tariffs, India, international trade, export competitiveness, trade protectionism, employment, Indian economy, bilateral trade agreement, export diversification.

"Tariffs Imposed by the United States on India and Their Economic Impact on the Indian Economy", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.13, Issue 10, page no.b503-b514, October-2026, Available :http://www.jetir.org/papers/JETIR2610153.pdf

"Tariffs Imposed by the United States on India and Their Economic Impact on the Indian Economy", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.13, Issue 10, page no. ppb503-b514, October-2026, Available at : http://www.jetir.org/papers/JETIR2610153.pdf