{"id":3350,"date":"2025-08-13T05:24:00","date_gmt":"2025-08-13T01:24:00","guid":{"rendered":"https:\/\/omanet.om\/en\/news\/economy\/india-us-tariff-hike-threat\/"},"modified":"2025-08-13T10:00:23","modified_gmt":"2025-08-13T06:00:23","slug":"india-us-tariff-hike-threat","status":"publish","type":"post","link":"https:\/\/omanet.om\/en\/news\/economy\/india-us-tariff-hike-threat\/","title":{"rendered":"US Tariff Hike Threat on India: What It Means for Investors and Businesses in Oman"},"content":{"rendered":"<style>\r\n@keyframes hitv3sog-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitv3sog-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitv3sog-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitv3sog-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OMAN OFFER<\/span><\/div>\r\n    <div class=\"hitv3sogh\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.15s;\">Websites For <span style=\"color:#dc2626;\">Omani Businesses.<\/span><\/div>\r\n    <div class=\"hitv3sogs\" style=\"animation:hitv3sog-slideup 0.7s ease both;animation-delay:0.3s;\">Empower your brand with custom digital solutions designed for high conversion and market dominance.<\/div>\r\n    <div class=\"hitv3sogbl\"><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Responsive designs built for growth<\/span><\/div><div class=\"hitv3sogbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Fast loading with smart automation<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitv3sogct\">\r\n    <button class=\"hitv3sogbtn\" style=\"animation:hitv3sog-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Build Your Free Website <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitv3sogbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div>\n<p>Mumbai \u2014 Indian exporters are urgently seeking ways to counter the impact of US President Donald Trump\u2019s threat to double tariffs on Indian goods from 25% to 50%. This move targets India\u2019s ongoing purchase of Russian oil, aiming to cut Moscow\u2019s revenue amid its military action in Ukraine.<\/p>\n<p>Economist Garima Kapoor of Elara Securities warned that with a 50% tariff, Indian products would lose all competitive advantage in the US market. India, one of the world\u2019s largest crude oil importers, faces a deadline of August 27 to secure alternatives for roughly one-third of its current oil imports.<\/p>\n<p>Though India is not a major export giant, it shipped around $87 billion worth of goods to the US in 2024. The proposed tariff hike threatens labor-intensive, low-margin sectors such as gems and jewellery, textiles, and seafood. The Global Trade Research Initiative projects a potential 60% decline in US sales for industries like garments in 2025.<\/p>\n<p>Exporters are racing to ship orders before the August 27 deadline. Vijay Kumar Agarwal, chairman of Creative Group, a Mumbai-based textile and garment exporter heavily reliant on the US market, said, \u201cWhatever we can ship before August 27, we are shipping.\u201d However, he cautioned that this is only a temporary fix and could lead to chaos if unresolved. Agarwal also expressed deep concern for the future of his 15,000 to 16,000 employees, describing the situation as \u201cvery gloomy\u201d with expected immense business losses.<\/p>\n<p>Efforts to resolve the issue are entangled in geopolitical tensions. Trump is scheduled to meet Russian President Vladimir Putin on Friday, marking their first face-to-face encounter since Russia\u2019s invasion of Ukraine began in February 2022. India, maintaining longstanding ties with Moscow, finds itself in a precarious position. Prime Minister Narendra Modi has spoken with both Putin and Ukrainian President Volodymyr Zelensky, advocating for a peaceful resolution.<\/p>\n<p>The tariff threat is already impacting Indian businesses, with new US orders dwindling and putting future revenue and hundreds of thousands of jobs at risk. Some leading Indian apparel exporters with global operations are considering relocating US orders to lower-tariff countries. Pearl Global Industries revealed that some US buyers have asked for production shifts to countries like Vietnam and Bangladesh, where tariffs are lower. Gokaldas Exports is contemplating boosting manufacturing in Ethiopia and Kenya, where tariffs stand at 10%.<\/p>\n<p>Moody\u2019s recently warned that the wider tariff disparity may reverse India\u2019s recent gains in attracting investment. The gems and jewellery sector, which exported over $10 billion worth in 2024 and employs hundreds of thousands, is particularly vulnerable. Ajesh Mehta from D. Navinchandra Exports noted a halt in new orders, anticipating that 150,000 to 200,000 workers could be affected. He emphasized that while a 10% tariff was manageable, a 50% levy on luxury goods is unsustainable as customers would likely cut back on spending.<\/p>\n<p>Seafood exporters, some of whom have been advised by US buyers to pause shipments, are exploring alternative markets such as China, Japan, and Russia. Alex Ninan, a partner at Baby Marine Group, said, \u201cThe United States is out right now. We will have to push our products to alternative markets.\u201d However, he acknowledged the difficulty, explaining that building new markets quickly is not feasible.<\/p>\n<p>This looming tariff increase poses a severe threat to India\u2019s export landscape and the livelihoods of millions within the country\u2019s economy.<\/p>\n<p><style>\r\n@keyframes hitl8gak-fadein{from{opacity:0;transform:translateY(14px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-slideup{from{opacity:0;transform:translateY(20px)}to{opacity:1;transform:translateY(0)}}\r\n@keyframes hitl8gak-pulse{0%,100%{box-shadow:0 0 14px #dc262688}50%{box-shadow:0 0 32px #dc2626,0 0 60px #dc262655}}\r\n@keyframes hitl8gak-shimmer{0%,100%{opacity:0.3;transform:scaleX(0.4)}50%{opacity:1;transform:scaleX(1)}}\r\n@keyframes hitl8gak-glow{0%,100%{opacity:0.6}50%{opacity:1}}\r\n@keyframes 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solid rgba(255,255,255,0.18);backdrop-filter:blur(8px);-webkit-backdrop-filter:blur(8px);border-radius:20px;padding:3px 10px 3px 7px;margin-bottom:clamp(5px,0.6vw,9px);animation:hitl8gak-badge 0.5s ease both;\"><span style=\"display:inline-block;width:6px;height:6px;border-radius:50%;background:#dc2626;flex-shrink:0;\"><\/span><span style=\"font-size:clamp(8px,0.9vw,10px);font-weight:700;letter-spacing:0.07em;color:rgba(255,255,255,0.88);text-transform:uppercase;white-space:nowrap;\">EXCLUSIVE OFFER<\/span><\/div>\r\n    <div class=\"hitl8gakh\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.15s;\">Your Website <span style=\"color:#dc2626;\">Should Sell.<\/span><\/div>\r\n    <div class=\"hitl8gaks\" style=\"animation:hitl8gak-slideup 0.7s ease both;animation-delay:0.3s;\">Custom-built websites with smart automation & AI-powered features.<\/div>\r\n    <div class=\"hitl8gakbl\"><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>SEO-optimized & lightning fast<\/span><\/div><div class=\"hitl8gakbi\"><span style=\"display:inline-block;width:5px;height:5px;border-radius:50%;background:#dc2626;flex-shrink:0;margin-right:7px;\"><\/span><span>Smart features built for your business<\/span><\/div><\/div>\r\n  <\/div>\r\n  \r\n  <div class=\"hitl8gakct\">\r\n    <button class=\"hitl8gakbtn\" style=\"animation:hitl8gak-pulse 2.5s ease-in-out infinite;animation-delay:1s;\">Get Free Consultation <span style=\"opacity:.9;\">\u2192<\/span><\/button>\r\n    <div class=\"hitl8gakbr\">hit.land<\/div>\r\n  <\/div>\r\n<\/a>\r\n<\/div><br \/>\n<\/p>\n<p>Special Analysis by Omanet | Navigate Oman&#8217;s Market<\/p>\n<p>The escalating US tariffs on Indian exports, particularly a potential hike to 50 percent, <strong>pose significant risks to low-margin, labor-intensive industries<\/strong>, leading to potential job losses and disrupted supply chains. For Oman-based businesses and investors, this situation <strong>creates opportunities to fill gaps left by Indian exporters<\/strong>, especially in garments, gems, and seafood sectors, as companies shift production to other low-tariff markets. Smart investors should consider <strong>diversifying supply chains and exploring alternative markets alongside India to mitigate geopolitical and tariff-related risks<\/strong> in the near term.<\/p>\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Indian exporters face severe challenges as the US threatens to double tariffs from 25% to 50% if India continues buying Russian oil. This move risks massive job losses, especially in labor-intensive sectors like textiles, gems, and seafood, jeopardizing $87 billion in exports to the US market.<\/p>\n","protected":false},"author":18,"featured_media":3351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[482],"tags":[1185,217,1096],"class_list":["post-3350","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-export-impact","tag-india","tag-us-tariffs"],"jetpack_featured_media_url":"https:\/\/omanet.om\/wp-content\/uploads\/2025\/08\/3098079.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/comments?post=3350"}],"version-history":[{"count":1,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3350\/revisions"}],"predecessor-version":[{"id":3352,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/posts\/3350\/revisions\/3352"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media\/3351"}],"wp:attachment":[{"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/media?parent=3350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/categories?post=3350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/omanet.om\/en\/wp-json\/wp\/v2\/tags?post=3350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}