The imposition of US tariffs on Indian goods will hit several key sectors—textiles, electronics, gems and jewellery, auto components, and machinery. Pharmaceuticals and energy are relatively insulated, having been exempted. For American consumers, this translates to higher prices across a range of products.

For India, the immediate challenge is market diversification. While policymakers may revive earlier efforts to engage countries in the Global South, such recalibration will take time. Indian trade delegations have previously explored alternative destinations, but developing strong commercial linkages outside the US and Europe—long-standing trade partners—will be no easy task. Indian exporters, especially in sectors now facing tariffs, are likely to see margin compression and volume losses in the near term.

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