Trade Tides: US Tariff Impact on India's Export Dynamics

India's merchandise exports to the US dropped in December 2025, affected by high American tariffs. Despite this, the April-December period showed positive trade growth. Data reveals varying export and import trends with significant import increase from the US and changes in trade with other global partners.

India's merchandise exports to the United States experienced a downturn of 1.83 percent, reaching USD 6.88 billion in December 2025, a consequence of high tariffs imposed by the US, as stated in data from the Commerce Ministry.

In contrast, during the fiscal period from April to December, exports to the US surged by 9.75 percent to USD 65.87 billion, whereas imports expanded by 12.85 percent to USD 39.43 billion. The US enforced a substantial 50 percent tariff on Indian goods starting August 27, leading to ongoing negotiations between the two nations for a bilateral trade accord.

Despite these challenges, Commerce Secretary Rajesh Agrawal emphasized that exports have shown resilience. Transport of oil from all traditional suppliers, including a 40-50 percent increase in purchases from the US, contributed to a robust import performance. Export performance with the UAE, Germany, and several other countries improved, while trade with some Western and South Asian nations faced declines.

(With inputs from agencies.)