Trump Administration Reportedly Considering Ban on Outsourcing to Indian IT Firms After Imposing 50% Tariff on Indian Goods

Washington / – After slapping a 50% tariff on Indian goods, U.S. President Donald Trump is now reportedly weighing a ban on outsourcing work to Indian IT companies, a move that could have severe repercussions for India’s multibillion-dollar technology sector.

The speculation arose from a post by Lara Loomer, a prominent right-wing Trump supporter, who suggested that the administration might restrict American corporations from contracting Indian firms for IT and back-office services. While U.S. officials have neither confirmed nor denied the claim, the mere possibility has caused widespread concern in India’s IT industry.

India’s IT firms, including giants such as TCS, Infosys, and Wipro, rely heavily on U.S. contracts, providing cost-effective services to American corporations that benefit from avoiding high domestic wages and overhead costs. The outsourcing model has also been a major source of employment in India, creating millions of jobs and driving the country’s tech boom.

Analysts warn that if the Trump administration follows through, it could destabilize India’s IT sector, lead to significant job losses, and further strain U.S.-India economic relations, already under pressure after the steep tariffs.

So far, neither the Indian government nor leading IT associations have issued an official statement, but industry insiders describe the prospect as a “potential earthquake” for India’s digital economy.