Tariff Troubles: Indian Exports to US Hit Hard in 2025

India's exports to the US are declining sharply due to high tariffs imposed by the Trump administration. With tariffs reaching up to 50%, the competitiveness of Indian goods is dwindling, significantly affecting sectors like apparel and electronics. Estimates suggest potential losses of USD 30-35 billion by FY 2026.

India's exports to the United States are experiencing a steep decline, as tariffs imposed by the Trump administration continue to undercut the competitiveness of Indian goods, according to Global Trade Research Initiative (GTRI).

The organization's analysis reveals that August shipments to the US dropped to $6.7 billion, representing a 16.3% decline from July. This marks the steepest monthly decrease of 2025, coinciding with the increase in US duties to 50% by the end of the month.

The real impact of the tariff hikes became evident by August. With key sectors such as apparel and electronics reliant on the US market for significant portions of their exports, experts forecast possible losses of $30-35 billion in US export revenues if the current tariff regime persists through fiscal year 2026.

(With inputs from agencies.)