The Impact of US Protectionist Tariff Policies on India: An Analysis of Exports, Trade Balance, and Employment

Recently, U.S. tariffs broke down the global market, as a result, the Indian stock market felt the tremors right away. It was the biggest crash of 2025, it washed away around 14 lakh crores of Indian investors. This paper examines the impact of American tariff policies on the Indian domestic market, focusing on exports across various sectors (such as steel, gems and jewelry, textiles, and pharmaceuticals), the trade balance, and employment. Using secondary data from 2016 to 2024, along with sectoral case studies, it analyzes the effects of U.S. tariffs, particularly post-2018, on India’s trade dynamics. The findings show short-term disruptions in steel, gems and jewelry, and textile exports but also highlight India's resilience, especially in pharmaceuticals and services. The paper concludes with actionable policy recommendations to build future trade resilience and protect labor-intensive sectors.