Finshots Daily What will happen if India gets a 500% tariff?
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Jan 15, 2026 What if the US imposes a staggering 500% tariff on India? This scenario could drastically multiply costs and slash US demand for Indian exports. With the US accounting for 18% of India's exports, the discussion centers on whether India can find alternative markets or negotiate free trade agreements. The podcast analyzes India's other export destinations and highlights that changing partners takes time. Strategies for building domestic demand and strengthening FTAs are recommended as a buffer against potential shocks.
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500% Tariff Would Kill US Demand
- A 500% tariff would effectively wipe out demand for Indian exports to the US overnight.
- Even pharmaceuticals or $10 shirts would become six times costlier and unaffordable for US importers.
US Is A Disproportionately Large Market
- The US accounted for about 18% of India's exports in 2024, roughly $79 billion.
- Losing that single market would create a large, concentrated demand hole that's hard to replace quickly.
No Single Country Can Match The US
- Global trade is concentrated so no other single country matches US demand for Indian exports.
- The next eight destinations together only make up about 32% of exports, and none equals the US alone.