US Tariff Threat: A Catalyst for India’s Export Diversification

The US's potential tariff hike on Indian goods could significantly impact Indian exports, pushing exporters to diversify markets. Despite existing tariffs, India's exports to the US rose due to resilient strategies. Ongoing trade talks aim to ease high duties, with India resisting concessions in agriculture and dairy sectors.

The potential increase in US tariffs on Indian goods could have a significant impact on exports to the US. Experts suggest this may serve as a catalyst for India to expedite market diversification and reduce reliance on specific markets.

Donald Trump's remarks on raising tariffs quickly come as India faces a 50% tariff related to Russian oil purchases. With Indian exports to the US falling by 20.7% between May and November 2025, experts emphasize the need for strategic decisions regarding trade relations with Russia.

The ongoing trade negotiations between India and the US, aiming to resolve tariff issues, are critical for restoring market access for Indian exporters. High import duties continue to affect shipments while the US seeks concessions on specific goods, which India opposes to protect farmers and MSMEs.

(With inputs from agencies.)