The recent Trump India tariffs have really reached some never seen levels right now. President Trump implemented a crushing 50% levy on Indian goods that’s worth about $87 billion. This is the highest rate that’s been imposed on any major trading partner until now. More to come? We hope that’s not the case, but only Trump knows what he’s planning. The Indian exports impact hit fast as the tariffs took effect today, on the date of August 27, 2025.

Trump’s India Tariffs Spark $87B Export Impact And Global Market Reaction

The Trump India tariffs are in fact quite an extreme and aggressive step from the basic rate imposed in August at 25%. The stock markets have also been particularly jumpy as the Indian import impact is felt across most sectors. The tariffs on imports totaling at a whopping 87B, which also include generic prescriptions, smartphone parts and even some machineries.

Trump stated on his Truth Social platform:

“India is not only buying massive amounts of Russian Oil, they are then, for much of the Oil purchased, selling it on the Open Market for big profits.”

Immediate Market Response to Trump India Tariffs

The effect of this news was felt very quickly and somewhat harshly in international markets as US and Indian markets showed a massive decline. The Dow Jones was down 2.8 percent whereas the Sensex of Mumbai was down 4.2 percentage points in a short bid to absorb the full impact of the intensification of the trade war between the US and India. As it currently stands, the currency markets are also experiencing massive fluctuations and some are even going so far as to say it may be the worst trade war in decades and that is pretty wild indeed.

India’s Ministry of External Affairs condemned the measures, stating:

“We have taken note of the additional tariffs imposed by the US. These actions are unfair, unjustified and unreasonable.”

Also Read: Tariffs Hit US Consumers Beyond BRICS Countries, Goldman Sachs Says

Industries Hit Hardest by the $87B Tariffs

The Indian exports impact is particularly severe in pharmaceuticals, where India supplies nearly 40% of generic drugs to the US market right now. Electronics manufacturing, including smartphone assembly, faces major disruptions despite some exemptions that are still in place. The textile sector, which employs about 45 million workers in India, also confronts significant challenges from these Trump India tariffs, along with the gems and jewelry industry.

Trump administration officials have been justifying the escalation, with the White House stating:

“President Trump aims to deter countries from supporting the Russian Federation’s economy through oil imports and impose serious economic consequences.”

Russia actually defended India’s position, with Kremlin press secretary Dmitry Peskov declaring:

“We believe that sovereign countries should have, and have the right to choose their own trade partners.”

Also Read: Trump’s 50% India Tariffs Trigger 85% Oil Spread Collapse