India-US Trade Dynamics: Shifting Trends Amid Tariff Adjustments

India's merchandise exports to the US declined due to high tariffs but grew elsewhere, while imports from the US rose. An interim trade deal partially rolled back tariffs. Notably, exports to China increased significantly, and imports from Switzerland surged. Trade patterns with other nations showed mixed results.

India's merchandise exports to the United States dropped by 21.77% to USD 6.6 billion in January, influenced by high American tariffs, as per Commerce Ministry data. A significant 50% tariff on Indian goods was initiated by the US on August 27, prompting interim trade negotiations.

The trade deal, finalized recently, has led to the US removing 25% punitive duties on Indian products from February 7, reducing India's reciprocal tariffs to 18% from 25%. This shift comes despite previous export contractions in several months, with a temporary increase of 22.61% noted in November.

Concurrently, US exports to India rose by 23.71% to USD 4.5 billion in January. India observed a hike of 5.85% in exports to the US and a 13.87% uptick in imports during April-January. Meanwhile, India's trade with China saw substantial growth, with exports increasing 55.65% and imports 16.67%, showcasing varied international trade dynamics.

(With inputs from agencies.)