50% US tariffs on Indian exports draw mixed response from Ludhiana bizmen

World MSME Forum president Badish Jindal expresses concern over the move, stating that such high tariffs diminish the commercial viability for American buyers sourcing from India

The United States’ announcement to impose an additional 25% tariff on Indian exports, bringing the total tariff to 50%, triggered a mixed response from Ludhiana’s industrial and export community on Wednesday.

Exports form just 10% of Punjab’s economy and only about 30% of that goes to the US, says World MSME Forum president Badish Jindal

While some see it as a blow to India’s global competitiveness, others believe the local economy may be insulated due to limited exposure to the US market.

World MSME Forum president Badish Jindal expressed concern over the move, stating that such high tariffs diminish the commercial viability for American buyers sourcing from India. “Once tariffs cross 25%, it’s no longer feasible for US importers to buy from India. Our competitors, like Bangladesh and Vietnam, enjoy much lower tariffs,” he questioned.

However, Jindal noted that Punjab’s industry might not be heavily affected, given its relatively modest export volumes to the United States. “Punjab exports fasteners, hand tools, machine tools, agriculture implements, processed foods, juices, masalas, garments, leathers and sports goods to the US. But exports form just 10% of Punjab’s economy and only about 30% of that goes to the US,” he explained.

Ludhiana-based garment exporter Ashutosh Shukla has already seen a tangible impact on his business. “Our US clients have paused orders. They’re taking a wait-and-watch approach,” Shukla said. He added that while his firm exports to other regions too, the overall garment export sector—valued at over ₹8 lakh crore annually to the US—will face significant setbacks if the tariffs remain in place.

“Those companies that rely heavily on US buyers are going to feel this pressure. We hope both countries come to a trade understanding soon to reduce the tariffs,” Shukla said.

Federation of Industrial and Commercial Organization (FICO) president Gurmeet Kular struck a more optimistic tone. He argued that India’s stronghold in sectors like pharmaceuticals and auto parts will help it retain relevance in the US market.

“In the auto sector, especially truck-trailer components, our cost of production is very low—lower than China’s. The US market can’t ignore that. These tariffs aren’t sustainable in the long run,” said Kular, hoping that trade negotiations between India and the US would help de-escalate the situation.