India is preparing for a wave of significant job losses as the impact of U.S. tariffs under the Trump administration begins to hit its export-driven sectors hard. Industries such as textiles, engineering goods, and agriculture, which have long relied on access to the American market, are now feeling the pressure from increased trade barriers imposed by the United States.
The situation has been described by some business leaders as a “nightmare,” with many companies forced to scale down operations due to a sharp decline in orders. The U.S. had previously been one of India’s largest trading partners, particularly for labor-intensive exports like apparel, leather, and auto parts. However, the imposition of higher tariffs has made Indian products less competitive, leading to a fall in demand.
Small and medium-sized enterprises (SMEs), which form the backbone of India’s export economy, are among the hardest hit. Many are now facing tough decisions, including laying off workers and shutting down production units. Experts warn that if the trend continues, the unemployment rate in these sectors could rise significantly, creating further stress on the already strained job market.
In response to the crisis, Indian government officials have been attempting to engage in trade negotiations with the U.S. to seek relief or reversal of the tariffs. However, progress has been slow, and the uncertainty continues to weigh heavily on the industry.
This downturn highlights the vulnerability of India’s export sectors to global policy shifts and raises concerns about the need for stronger domestic economic resilience and diversification of trade partners.
