Impact of Trump’s 100% tariffs on India:This will pressurise India to sign trade deal cause severe disruptions in exports, say experts

The signing of the Sanctioning Russia and Iran Act by US President Donald Trump and subsequent potential imposition of up to 100% tariffs has sent shivers down the spines of exporters in India. Industry experts have expressed serious concerns regarding potential impact of punitive tariffs on Indian exports. Tariffs to severely disrupt India’s exports to America Such duties, if imposed, could severely disrupt India’s exports to America, said exporters according to PTI. We are very worried and concerned. If the US imposes high tariffs, it will completely halt our exports to the US. No importer can afford this high level of tariffs. -FIEO, president, SC Ralhan to PTI Uncertain environment haunts more than tariffs Ralhan also said many engineering sector exporters have significant businesses in America and the US should factor in these aspects before taking any decision on new duties.
Sharing similar views, Mumbai-based exporter and CMD of Technocraft Industries Sharad Saraf said that more than tariffs, the uncertain environment impacts more. The clear impact can be assessed only after we have the details. We also have to see how much duty will be imposed on our competitor nations like China. We are quite worried about the new law because it is creating a lot of uncertainty in the otherwise healthy trade relations. We are not able to take decisions. -Technocraft Industries CEO
Trade Promotion Council of India (TPCI) Chairman Mohit Singla said that the US move is a cause of “major worry” for Indian exporters. If imposed, it can severely impact certain sectors. It can create disruptions in the business relations of the two countries. -Singla The US is the single-largest market for India’s textile and apparel exporters, making the sector particularly vulnerable to any additional tariffs, industry body Confederation of Indian Textile Industry (CITI) said in a press release, according to ANI. This can severely impact India’s textile and apparel exports, added the industry body. Any additional tariffs under this Act will be very difficult to absorb for the MSME-dominated Indian textile and apparel sector already under stress due to several factors, including the continuing turmoil in West Asia. It will severely impact our ability to sell in the United States, our most significant market by a distance. -CITI Chairman Ashwin Chandran How much is India’s textile sectors exposed to US market? India’s overall textile and apparel exports rose 6.39% in US dollar terms in August 2026 from the same period last year, with textile exports increasing 13.03% while apparel exports declined 2.74%.
During April-August 2026, textile exports grew 6.94%, while apparel exports fell 9.10%, leaving cumulative textile and apparel exports marginally lower by 0.24% year-on-year. Potential impact of Trump’s 100% tariffs on India: Overall the exporters have said that the likely impact on Indian exports can be assessed only after Washington announces the tariff rate, product coverage and implementation schedule. Trump had on 18 September signed the Sanctioning Russia and Iran Act, which may impose steep levies on Moscow and its top energy buyers.
The Act authorises President Trump to impose tariffs of up to 100% on countries buying Russian oil and gas, including China and India. US tariffs only on top 5 Russian crude purchasers
The law comes into effect within 30 days of signing by the President and requires him to impose duties of up to 100 per cent on goods imported from countries that are the top five purchasers of Russian crude oil or natural gas by total volume during the 12 months preceding enactment. How much Russian oil India purchases? Why India buys so much Russian crude? US is largest trading partner of India: The US is the largest trading partner of India. During April-August 2026-27, India’s merchandise exports to the US grew 6.17% to $42.8 billion, while imports increased 29.6% to $28 billion. In 2025-26, bilateral trade grew 6.5% to $140.76 billion or ₹13.37 lakh crore from $132.2 billion or ₹12.55 lakh crore in 2024-25. The previous fiscal trade figures constitute exports worth $87.3 billion or ₹8.29 lakh crore and imports of $53.45 billion or ₹5.07 lakh crore. What India majorly exports to America? India’s main exports to the US included drug formulations and biologicals, telecom instruments, precious and semi-precious stones, petroleum products, vehicle and auto components, gold and other precious metal jewellery, ready-made garments of cotton, including accessories, and products of iron and steel. What India majorly imports? Imports included crude oil, petroleum products, coal, coke, cut and polished diamonds, electric machinery, aircraft, spacecraft and parts, and gold. US can still levy tariffs on India even if we reduce Russian oil purchases: GTRI Think tank GTRI said that the new US law puts India at direct risk of tariffs of up to 100% and may be used to pressure New Delhi to cut Russian oil purchases and accept an unequal bilateral trade agreement, perhaps in return for restoring the 18% offered in the February 6 joint statement. India should not trade its energy security for temporary tariff relief. Neither signing a trade agreement nor ending Russian oil purchases will protect India from future US action under Section 301, sectoral tariffs or other trade laws. -GTRI founder Ajay Srivastava