On 27 August 2025, the United States officially imposed 50% tariffs on a wide range of Indian-origin goods, a move triggered by India’s continued purchase of Russian oil. This unexpected escalation—initially proposed during former President Trump’s 2024 campaign—has now come into force, creating considerable concern across international trade corridors.
The tariff hike covers textiles, garments, gems and jewellery, automotive components, leather goods, furniture, chemicals, food products, and more. With India historically being one of the largest exporters of these categories to the U.S., the policy threatens to disrupt £60–75 billion worth of bilateral trade and destabilise countless supply chains.
What’s Driving the Tariffs?
According to both Reuters and AP News, the U.S. decision was a direct response to India’s refusal to reduce oil imports from Russia, despite pressure from Western allies. While the Indian government maintains that its energy strategy is based on national interest and pricing logic, the U.S. has chosen to act through trade pressure, citing strategic misalignment and unfair economic advantage.
This marks a sharp turn in Indo-U.S. relations—raising diplomatic concerns and economic uncertainty in the global trade environment. Many Indian exporters have been caught off-guard, with goods already in transit now facing higher duties upon arrival.
Who’s Affected?
The tariffs will disproportionately impact India’s SME exporters, especially those involved in labour-intensive industries such as:
- Apparel and Textiles – A sector employing over 45 million people in India, now facing potential order cancellations and payment renegotiations.
- Gems & Jewellery – India’s diamond and gold jewellery exports have long dominated U.S. retail shelves; now, margin pressure is intensifying.
- Leather and Footwear – A traditionally strong export segment, with manufacturing hubs in Tamil Nadu and Uttar Pradesh now seeing deferred U.S. orders.
- Processed Food and Packaging – Indian spices, snacks, and ready-to-eat goods face increased scrutiny from distributors due to customs cost hikes.
As reported by Reuters, India’s GDP could take a 0.5–0.6% hit in the coming financial year, with employment across these sectors expected to fall sharply.
Policy Response and Market Diversification
In response, India’s Commerce Ministry is preparing a relief package including credit guarantees, increased MEIS (Merchandise Exports from India Scheme) support, and accelerated trade talks with the EU, ASEAN, GCC, and Latin America. Exporters are being encouraged to pivot to alternative markets and adjust product strategies to remain competitive.
However, this is easier said than done. Many businesses are already in peak production mode for holiday orders bound for the U.S. and now face logistical and financial bottlenecks that cannot be undone overnight.
How NG Terminal Supports Exporters in Uncertain Times
At NG Terminal (NGT), we understand the volatility of global trade—particularly in today’s politically charged environment. Our clients rely on us not just for physical logistics but for market intelligence, compliance guidance, and strategic adaptability.
Here’s how we’re stepping in to support clients impacted by the U.S. tariff hikes:
- Tariff Advisory & Product Classification
We offer real-time support in reviewing HS codes, tariff schedules, and reclassification opportunities for clients exporting to the U.S. and other global markets. This ensures correct duty calculations and identifies mitigation strategies where possible.
- Customs Brokerage & Duty Planning
NGT’s bonded warehouse near Heathrow allows for deferred duty payments, re-export procedures, and customs optimisation. For Indian exporters trans-shipping via the UK, we assist with precise customs clearance and help reduce unnecessary tax burdens.
- Market Diversification Support
Our presence at key trade expos (OPENeX, WMX, CILF) allows us to connect clients with emerging buyers across Europe, the Middle East, and Africa. We assist exporters in building entry strategies for these new regions—including labelling, compliance, and bonded storage models.
- Digital Export Readiness via MyNGT
The MyNGT platform allows exporters to track declarations, warehouse status, tariff changes, and payment flows—all in one portal. When policy shifts happen suddenly, digital control helps minimise confusion and stay agile.
Looking Ahead
This latest tariff development is a wake-up call for all stakeholders in the global supply chain. Trade dynamics are now deeply intertwined with geopolitics, and exporters must adopt smarter, more resilient strategies.
NG Terminal remains committed to supporting businesses through this complex landscape. Whether you’re facing increased tariffs, shifting trade lanes, or looking to diversify export markets, our customs and bonded logistics solutions are designed to help you navigate uncertainty with confidence.
📩 Follow NG Terminal for further updates on international trade developments.
📞 Contact us at ngtbd@ng-terminal.com to learn how we can support your export resilience.
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