US Tariff Hike Impacts India's Export Dynamics

India's exports to the US faced a significant downturn due to tariff increases, with shipments dropping 28.5% from May to October 2025. Key sectors, including labor-intensive products and smartphones, saw sharp declines. The aggressive tariff hikes raised duties on Indian goods to 50%, severely impacting export performance.

India's export industry is grappling with an unprecedented downturn, driven largely by significant US tariff hikes. A report by the Global Trade Research Initiative (GTRI) highlights a 28.5% drop in shipments between May and October 2025, as duties on Indian goods soared from 10% in April to a staggering 50% by late August.

These aggressive moves have positioned Indian goods among the most heavily taxed imports to the US, surpassing tariffs imposed on key trading partners like China and Japan. While China faced around 30% duties, Japan contended with just 15%, underlining the impact on India.

The hardest hit were labor-intensive sectors, smartphone exports, and chemical products, all experiencing dramatic decreases in trade volume. The repercussions of these tariff hikes on India's export-led sectors cast a shadow on the economic partnership between the two nations.

(With inputs from agencies.)