US President’s Move Targets ‘Make in India’ Initiative, Threatens Millions of Jobs in Textiles, Pharma, and IT Sectors; PM Modi Vows Retaliatory Measures
Published on: September 24, 2025
By: BTNI
Location: New Delhi, India
In a bold escalation of protectionist policies, US President Donald Trump has fulfilled his long-standing threat by imposing a staggering 50% tariff on all imports from India, effective immediately. The announcement, made during a White House press briefing, has sent shockwaves through India’s economy, raising alarms over the future of the ‘Make in India’ campaign and the livelihoods of millions dependent on export-driven industries.
The tariffs primarily target key sectors such as textiles, pharmaceuticals, gems and jewelry, and information technology hardware, which collectively account for over $100 billion in annual exports to the US. Economists warn that this could lead to a 15-20% drop in India’s GDP growth for the fiscal year, with immediate job losses estimated at 2-3 million in manufacturing hubs like Gujarat, Tamil Nadu, and Maharashtra. “This is not just a trade barrier; it’s an economic assault on our self-reliance,” said Commerce Minister Piyush Goyal in a fiery response from Parliament.
Prime Minister Narendra Modi, addressing the nation from his official residence, described the move as “unilateral and unjust,” emphasizing that India will not bow to “America First” at the expense of global equity. He announced the formation of a high-level task force to explore retaliatory tariffs on US goods like agricultural products and aircraft, while urging domestic industries to diversify markets towards Europe and Southeast Asia. “We built ‘Make in India’ to empower our youth, not to be undermined by foreign whims. This is a moment to innovate, not retreat,” Modi stated, invoking the spirit of Atmanirbhar Bharat.
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Industry bodies like FICCI and CII have called for emergency meetings with the government, highlighting the ripple effects on supply chains. Textile exporters in Surat report canceled orders worth crores, while pharma giants like Sun Pharma and Dr. Reddy’s brace for higher compliance costs. On the diplomatic front, External Affairs Minister S. Jaishankar is scheduled to meet US counterparts in Washington next week to negotiate exemptions, but analysts doubt a quick resolution amid Trump’s re-election rhetoric.
As stock markets in Mumbai dipped 3% at opening bell, with heavy selling in export-oriented stocks, the tariffs underscore deepening US-India frictions. While some view it as leverage for better trade deals, others fear a full-blown trade war that could reshape global alliances. For now, India’s resilient spirit is tested once again, with policymakers racing against time to shield the economy from this transatlantic tempest.
