Trump Hire Act: Tough Days For Indian IT Workers?

The President of United States, Donald Trump has taken a pretty solid stand against India as he has started to impose tariffs on the country. This is in view of the fact that India has been continuing the oil trade with Russia in recent times, despite the reprimands of Trump.

In this context, something very interesting has happened now as it is being reported that Trump is looking to bring a new restriction on the Indian IT sector by rejecting outsourcing from the United States companies.

Based on recent reports, Trump is pushing the HIRE Act, a proposed bill that would impose a 25% tax on outsourced services to discourage tech outsourcing to India and elsewhere. It's not an outright ban, but aims to make it less economically viable. The bill is still under consideration as of September 2025.

Trump enacts restrictions like the proposed HIRE Act (25% tax on outsourced services), India's IT sector contributing around 8% to GDP and $150B+ from US clients could face 10-20% revenue drop. The series of consequences will also include job cuts up to 500K, and slowed growth 0.5-1% GDP impact short-term.

If this bill comes to implementation very soon, then it can be understood that the repercussions will be seriously felt on the Indian IT sector. A major chunk of the jobs in the Indian IT sector could be revoked immediately after Trump makes this communication.