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Can India Shield Its Exports as U.S. Tariffs and Trade Uncertainty Rise?

The 25% tariff hike by the US poses a significant challenge to India’s major export sectors—electronics, textiles, and gems & jewellery—denting their competitiveness against other Asian countries. Labour-intensive industries are especially at risk in the short term, with potential implications for employment and GDP if trade negotiations drag beyond October 2025. While some view the move as a Trump-era bargaining tactic, others fear a lasting policy shift. To assess the impact, Moneycontrol spoke with economist DK Pant on how India can strike a balance between safeguarding sensitive sectors and securing a favourable trade deal.

first published: Aug 4, 2025 03:52 pm