New Delhi: The 50% tariff on exports to the US from India has come into effect from today, August 27.The exporters body Federation of Indian Export Organisations on August 26 expressed serious concerns over high US tariffs on Indian goods and said that textiles and apparel manufacturers in Tirupur, Noida, and Surat have “halted production amid worsening cost competitiveness due to these steep duties.” The body has underlined the “immediate need for government support.”India faces the highest tariff card in Asia.US duties on Indian goods will increase to 50% from August 27. The move will severely disrupt the flow of Indian goods to its largest export market, FIEO president S.C. Ralhan has said.Ralhan has described the development as a setback and stated that it can severely impact India’s exports to the US, saying that the pricing disadvantages of 30-35%, render them uncompetitive in comparison to competitors from China, Vietnam, Cambodia, Philippines and other Southeast and South Asian countries.“FIEO expresses grave concern over the US government’s imposition of an additional 25% tariff on Indian-origin goods – raising total duties on many export categories up to 50%, effective from August 27, 2025,” he said, adding that “textiles and apparel manufacturers in Tirupur, Noida, and Surat have halted production amid worsening cost competitiveness”. This sector is losing ground to lower-cost rivals from Vietnam and Bangladesh, Ralhan said.The statement by FIEO says that “while for the seafood especially shrimps, as the US market absorbs nearly 40% of Indian seafood exports and the tariff increase risks stockpile losses, disrupted supply chains, and farmer distress.On other labour-intensive sectors of exports leather, ceramics, chemicals, Handicrafts, Carpets etc, the industry faces a sharp erosion of competitiveness, particularly against European, South East and Mexican producers, reiterated Ralhan. Delays, order cancellations, and negated cost advantages loom large on these sectors.”Looking at the current emerging scenario, FIEO chief has called for “immediate Government support which includes push for interest subvention schemes and export credit support to sustain working capital and liquidity.”Exports of low-margin and labour-intensive goods, i.e., apparel, textiles, gems and jewellery to seafood, especially shrimps, carpets and furniture, could become unviable in the US market with tariffs making necessary higher prices. This could sharply hit low-skilled jobs in India, already reeling from a grave unemployment crisis, lay offs of skilled personnel in the past two years and stagnant wages across the board.Experts have estimated that the value of India’s merchandise exports to the US could drop by 40-45% in 2025-26 compared with the previous year, two-thirds of exports by value to the US will be hit by 50% tariffs, taking de-facto tariff rates to well over 60% in a few categoriesThink-tank Global Trade Research Initiative (GTRI) has earlier calculated that this could lead to product exports to the US falling from nearly $87 billion in 2024-25 to $49.6 billion this year. The Wire had calculated earlier, that clothing, both knitted and woven, faces the highest tariff rate under the new scheme, and other textiles too will be badly hit. Tax expert Ved Jain told The Indian Express, “How is it justifiable to put pressure on a third country to achieve an objective in a fight between three countries, where one is merely a negotiator?”Other senior diplomats have questioned the Modi government and especially the external affairs minister, S. Jaishankar’s handling of Trump in his second avatar, leading to it being wholly unprepared for the high tariff. Vivek Katju, former secretary in the ministry of external affairs has said India needs answers.