Subhash Goyal, Chairman of the Tourism Expert Committee at the Chamber of Commerce, on Wednesday warned that the 25% tariff imposed by US President Donald Trump on Indian imports would significantly impact India’s export performance and trigger a broader slowdown in the country’s manufacturing sector.
Calling it a “sad day” for Indian exporters, Goyal said the decision would particularly hurt sectors like carpets, pharmaceuticals, and handicrafts, which rely heavily on access to the US market.
“India exports goods worth over $100 billion to the US, with a trade surplus of over $40 billion. This move will slow down our exports and create a ripple effect across the manufacturing ecosystem,” Goyal told ANI.
He also pointed out that American consumers would not remain unaffected.
“It will hurt them too. US airports are already seeing fewer tourists. Even Disneyland has reported a drop in footfall. This is not a one-sided impact,” he added.
Goyal stressed the need for India to rethink its export strategy and reduce over-dependence on the American market by exploring opportunities in Asia and Europe.
Earlier in the day, President Trump announced that a 25% tariff, along with an additional penalty, would be levied on Indian imports starting August 1. Justifying the move, Trump cited India’s high tariffs, complex non-monetary trade barriers, and continued energy and defense ties with Russia.
“While India is our friend, their tariffs are among the highest in the world. They also continue to buy a majority of their military equipment and energy from Russia. India will therefore be paying a tariff of 25%, plus a penalty, starting August 1,” Trump said in a Truth Social post.
In response, Bharatiya Janata Party MP Pratap Chandra Sarangi maintained that India, under Prime Minister Narendra Modi’s leadership, would handle the situation effectively.
“There’s no reason to panic. India is a massive market and our exports have grown rapidly. We will respond with our own strategy and strength,” Sarangi told ANI.
The tariff decision is expected to test India-US trade ties, particularly amid heightened global tensions and shifting geopolitical alignments.
