US 50% Tariffs Impact $48 Billion Indian Exports, Risk Tamil Nadu Jobs

The United States, under President Donald Trump's administration, has escalated tariffs on Indian goods to a total of 50%, significantly impacting India's exports, which are estimated at $48.2 billion and potentially leading to a $24 billion export loss. This tariff hike includes an additional 25% penalty imposed due to India's continued purchase of Russian oil, effective from August 27. In response, the Modi government is increasing domestic consumption through a $50 billion stimulus to offset export setbacks. The state of Tamil Nadu, heavily reliant on the US market for exports, warns of severe economic and employment losses, particularly in labour-intensive sectors like textiles, which alone could see up to 3 million jobs lost. Tamil Nadu's Chief Minister M.K. Stalin has appealed to the central government for urgent measures, including GST reforms and financial support to mitigate the impact. Meanwhile, the US expects to generate $50 billion monthly from these tariffs, with additional plans to impose steep tariffs on semiconductor and pharmaceutical imports to boost domestic production and national security.