The US has imposed a 50% tariff on Indian mentha oil imports, causing a major crisis for the industry.
Exporters say the tariffs threaten the livelihoods of thousands of farmers and workers.
The hike includes an additional 25% tariff imposed by Donald Trump over India’s purchase of Russian crude oil.
The new levies apply to Indian products entering the US from August 27, 2025.
The mentha oil industry is facing a major crisis with a potential loss of several crores of rupees due to the 50% tariff imposed by the US on Indian imports, according to exporters.
The tariffs are threatening the livelihoods of thousands of farmers and workers, they said.
The additional 25% tariff imposed by US President Donald Trump on India for its purchase of Russian crude oil came into effect on Wednesday, bringing the total amount of levies imposed on New Delhi to 50%.
The Department of Homeland Security (DHS), in a draft order published on Monday, said the increased levies will hit Indian products that are "entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025".
Earlier, Trump announced reciprocal tariffs of 25% on India that came into effect on August 7, when tariffs on about 70 other nations also kicked in.
Mentha oil is an aromatic compound used as a raw material to make a wide range of products.
Amrit Kapoor, an exporter, said orders have been put on hold or cancelled.
"The cost of a product of ours that was priced at USD 20 increased to USD 30 overnight due to the 50% duty. The buyer there doesn't understand how to get a USD 30 product from India. So, orders are on hold. The goods are being manufactured in the factory and we don't know when they will go," he said.
Kapoor highlighted the broader implications, particularly for farmers and workers.
"Over 10 lakh of our farmer brothers are connected to this. They will not be able to get enough money, and I think they will not even get the cost of their production back," he said.
He also raised concerns about the loss of employment for factory workers.
"If America continues this behaviour and our production decreases, it is possible that in the coming time we may have to reduce the workers at factories," he said.
Shirish Gupta, the president of the Rampur chapter of the Indian Industries Federation, called the tariffs a "pressure tactic" and expressed faith in the government's response.
"The government should create schemes for the industries that are in danger due to the tariff issue so that they don't close down and people's livelihoods are not put at risk." He said he believed that "this is a temporary phase" and that "soon a positive result will come out".
Exporters in Moradabad too are feeling the heat.
Moradabad, which is popularly known as the 'Brass City', exports handicrafts worth ₹8,500-₹9,000 crore every year, with nearly 75% going to the US and the remaining to Europe and Gulf countries.
"The 50% tariff imposed by the Trump administration has brought exports to a standstill. Orders worth more than ₹300 crore have already been halted and another ₹150 crore worth of business is shifting to other countries," said Haji Iftekhar, an export firm owner.
"This could lead to a 50% fall in US-bound exports, pushing nearly 2 lakh people into unemployment. Several firms have already begun laying off workers," he claimed.
