Trump's 50% Tariff Takes Effect: Rajasthan's Economy Faces Severe Impact

With the imposition of a 50 percent Trump tariff from 27 August, the most affected sectors are those based on labour, including gems, jewellery, garments, handicrafts, marble, granite, engineering, and automobile goods.

Trump 50 Percent Tariff: Following the release of a notification from the US government, it is now certain that there is no prospect of an agreement between India and the US regarding tariffs. A 50 percent tariff will be imposed on exports of Indian products from 27 August. This will directly impact Rajasthan's exports worth ₹17,000-18,000 crore and the employment of approximately 700,000 people.

50 Percent Trump Tariff to be Imposed from 27 August

With the imposition of a 50 percent Trump tariff from 27 August, the most affected sectors are those based on labour, including gems, jewellery, garments, handicrafts, marble, granite, engineering, and automobile goods. Although Rajasthan's exporters are mentally prepared for this, the tariff is having a significant impact on the state's export-oriented units.

Most Orders and Bookings Cancelled

Most orders and bookings from the US have been cancelled. 60-70 percent of Rajasthan's exports occur between August and December. During this period, Christmas orders for jewellery, apparel, and handicrafts are prepared. Work in quartz factories is completely stalled, as 95 percent of quartz exports are to the US.

Industry in Shock

The state government is continuously reviewing this crisis, and the state's exporters and export-based manufacturing unit operators, while expressing confidence in the government, are mentally preparing themselves to face the challenge of Trump's tariffs. Nevertheless, the impact of the 50 percent tariff on Rajasthan's exports cannot be denied. Many industries are even in a state of shock. The biggest concern is employment in export-oriented units, as Rajasthan exports more labour-intensive goods than technology-based ones.

Government Should Immediately Announce Export Subsidy – Navneet Jhalani

Navneet Jhalani, coordinator of the Rajasthan Handicrafts Exporters Joint Forum, says that 6,000 handicraft units in Jaipur, Jodhpur, Udaipur, and Churu, and the 200,000 people associated with them, will be affected by Trump's tariff. The state's exporters are not capable of bearing this huge crisis alone. The government should immediately announce an export subsidy.

Sector – Annual Exports – Employment

Garments and Textiles – ₹6200 crore – 200,000
Gems and Jewellery – ₹5000 crore – 200,000
Handicrafts – ₹6000 crore – 200,000
Quartz-Marble-Granite – ₹2500 crore – 100,000.