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50% U.S. Tariffs on Indian Goods: How Dubai Can Save Your Export Business?

The landscape of global trade has drastically shifted in 2025 as the U.S. ramps up 50% U.S. tariffs on Indian goods, intensifying the US-India trade war 2025. These steep tariffs, labelled the “Trump tariffs on India,” are set to ruin export trajectories across industries. For Indian exporters, the question now is clear: where can they turn? Enter Export Business Dubai a strategic pivot, a lifeline, and a harbour of opportunity. This blog dives into why Dubai Trade Hub for Indian exporters has become the go to rescue path and how Leela International can guide the way.

The Tariff Tsunami: 50% U.S. Tariffs on Indian Goods

By August 27, 2025, the U.S. had escalated tariffs on a range of Indian products textiles, gems, jewellery, shrimp, furniture, garments, and more to a staggering 50% earlier, a 25% rate had already been in effect, making this a crushing doubling of duties. These so-called Trump tariffs on India are expected to affect roughly two thirds of shipments to the U.S., potentially cutting export values by over 40%

Key sectors like textiles, garments, jewellery, leather, and seafood especially shrimp are at risk. The sudden cost spike makes U.S. exports commercially unviable almost overnight U.S. India trade negotiations have stalled, leaving exporters scrambling

Why U.S.–India Trade War 2025 Matters

This US-India trade war 2025 isn’t just about tariffs, it’s a systemic downgrading of one of the world’s fastest-growing trade relationships. The economic fallout is definite as exports to the U.S. are likely to drop from around $87 billion to $50 billion in 2026, Experts warn of job losses across garment hubs, weakening investor confidence, and GDP growth hitting a standstill. Small and medium-sized exporters, particularly, are scrambling to stay afloat

Dubai: A Strategic Export Business Dubai Pivot

The UAE has established itself as a reliable centre for Indian enterprises due to its robust logistics, reduced tariff rates, and extensive global connectivity. Indian goods that are produced or completed in this country are subject to a tariff of 10% lower than the customary 50% when they are transported to the United States. Export Business Dubai is now emerging as a promising lifeline for Indian exporters. Here’s why this shift makes sense:

1. Dubai-A Trade Hub for Indian Exporters.

Dubai’s Jebel Ali Free Zone (JAFZA) and Bharat Mart are rapidly becoming central export gateways. JAFZA alone hosts thousands of Indian firms over 2,300 companies; with a 15% annual growth in 2024. The Bharat Mart trade hub, a massive 2.7 million sq. ft. facility caters especially to MSMEs and women led ventures, connecting Indian producers to markets across Africa, Europe, and the Gulf.

2. Governmental Capital.

Dubai’s authorities actively support exporters through trade missions, market Intel, and global promotion via platforms like “Dubai Global” and the Dubai Chamber of Commerce. These lift growth prospects and positioning across emerging markets.

3. Free Zones, Incentives, and Low Tariffs.

The India–UAE CEPA agreement further enables over 80% tariff reductions or eliminations for Indian goods entering Dubai. Dubai’s free zones like JAFZA, DMCC, DAFZ, and Meydan Free Zone offer duty free setups, streamlined logistics and 100% full foreign ownership.

4. Infrastructure and Logistics.

Strategic location and connectivity matter. With world-class ports, cargo services, and Dubai’s infrastructure, exporters gain seamless access to Europe, Africa, and the Middle East. Free zones like DMCC and Meydan specialize in commodities, e-commerce, and innovation ideal for diversified Indian exports.

Not Every Export Is Impacted.

It is noteworthy that many industries, like technology and medicines, have escaped the most recent tariff increases. This implies that there are no extra fees associated with exporting iPhones made in India to the United States. However, the situation is somewhat different for labour intensive businesses like chemicals, technical goods, and textiles. Industry insiders refer to the US tariffs as a “brick wall within their largest market” since they have a greater impact on Indian exports in these sectors.

How to Set Up Your Export Business Dubai ?

FAQ(s)

Which Indian sectors are most in danger?

Garments, textiles, jewellery, gems, shrimp/seafood, leather goods, furniture, and chemicals and sectors like auto parts and footwear.

What exactly triggered the 50% U.S. tariffs on Indian goods?

The U.S. doubled tariffs from 25% to 50% in August 2025, in response to India’s continued imports of Russian oil.

What role does CEPA play?

The Comprehensive Economic Partnership Agreement between India and UAE significantly lowers trade barriers eliminating or reducing tariffs on over 80% of imports from India

CONCLUSION

A burning transformation is being sparked for companies that export by the US-India trade war 2025, which has been driven by 50% U.S. tariffs on Indian goods. For Indian exporters, Dubai stands out as a strong trading hub providing strategic advantages in terms of market access, infrastructure, and regulation. Businesses can not only minimize the impact of Trump’s tariffs on India but also position themselves for success in a variety of international markets by switching to an export-oriented Dubai business model.

Leela International is here to help you navigate this transformation. From setting up in free zones and leveraging CEPA benefits to logistics, market connection, and documentation. Let Leela International chart your export future through the storm so your business doesn’t just endure, it excels.