What Specific Sectors Could Be Hit Hardest by New Tariffs
The Lindsey Graham Act has cleared both the House of Representatives and the Senate, granting President Donald Trump authority to levy tariffs as high as 100 percent on Indian exports entering the United States. The legislation, approved in September 2026, marks a significant escalation in trade tensions between Washington and New Delhi. It enables the president to act unilaterally on trade matters without requiring additional congressional approval for each measure.
Latest news
South Africans Mark Femicide Victims in Emotional Cape Town Vigil
Russians flee ahead of election results, fearing forced mobilisation
Israeli Forces Conduct Demolitions in Southern Lebanon, Hospital Set Ablaze
Fear of AI Job Losses Now Outweighs Hope for New Opportunities, Study ShowsThe bill’s passage reflects growing concerns among certain US lawmakers about trade imbalances and perceived unfair practices by India in sectors such as textiles, pharmaceuticals, and information technology services. Supporters argue the measure is necessary to protect American industries and jobs from what they describe as subsidized foreign competition. Critics, however, warn that such sweeping tariff powers could provoke retaliation from India and disrupt global supply chains, particularly affecting American businesses reliant on Indian imports.
How Might India Respond to These Trade Threats
Indian exports most vulnerable to the proposed tariffs include generic medicines, cotton apparel, and software services—industries where India holds a strong global market share. The Trump administration has previously accused India of maintaining high barriers to US agricultural goods while benefiting from access to American markets. If implemented, the tariffs could significantly increase costs for US consumers and businesses that depend on affordable Indian-made products, potentially leading to inflationary pressures in certain retail and manufacturing sectors.
India has not yet issued an official response to the passage of the Lindsey Graham Act, but past reactions to similar US trade actions suggest it may pursue diplomatic negotiations while preparing countermeasures. Indian officials have historically emphasized the strategic importance of the US-India trade relationship, which exceeded $190 billion in annual bilateral trade prior to 2026. A prolonged dispute could push India to diversify its export markets toward Europe and Southeast Asia, while also accelerating domestic industrial policies aimed at reducing import dependence.
What does the Lindsey Graham Act actually allow the president to do? The law permits President Trump to impose tariffs of up to 100 percent on specific imports from India without needing further approval from Congress for each action, streamlining the process for implementing trade restrictions.
Frequently Asked Questions
Could these tariffs lead to a trade war between the US and India? While not guaranteed, the risk of escalation is significant, as India may respond with its own tariffs on American goods, potentially harming exporters in agriculture, aerospace, and technology sectors on both sides.
When would the tariffs actually go into effect if implemented? The act provides the authority, but specific tariffs would require an executive order from the president, meaning implementation could follow within weeks or months depending on administrative decisions.