<h1>Tariff increase threatens export competitiveness of MSMEs, hitting textiles, diamonds and chemicals with market displacement risks.</h1> Imposition of additional US ad valorem tariffs will reduce export competitiveness and disproportionately impact India's MSMEs, with textiles, gems and jewellery (diamonds), and chemicals most affected. Textiles and ready-made garments face potential market share loss to lower tariff competitors, diamond clusters reliant on US demand will feel contraction, and chemical exporters will be disadvantaged versus suppliers from lower tariff jurisdictions; MSME-dominated steel re-rolling and long-products units are expected to see negligible impact.