The US Tariffs effect is continuously hurting India, and this time it’s the India’s export figures to the US that has caused an ouch movement for India. Since the US has imposed 50% tariffs on India, India’s exports to the US are falling at high rates hurting the Indian economy as well. The US Tariffs has started eroding the price competitiveness of domestic goods in Washington, as reported by think tank Global Trade Research Initiative (GTRI). August shipments to the US plunged to USD 6.7 billion, down 16.3 per cent from July — the steepest monthly fall of 2025 — as US duties doubled to 50 per cent by month’s end
Effect of the US Tariffs on India’s Exports to the US Market
Post the 50% trump’s tariffs India’s exports to the United States fell for the third consecutive month in August compared to July, to $6.7 billion, or ₹58,816 crore. The decline of 16.3% in August, marks the largest monthly decline so far in 2025. Worthless to say, According to Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), this decline in India’s exports is due to the 50% tariff imposed by Donald Trump.
Even though one-third of India’s exports – such as medicines and smartphones – are tariff-free, other sectors are under severe pressure.
How India’s Exports to America decreased Month by Month?
- In August, India exported goods worth $6.7 billion to the US.
- In July, India exported goods worth $8.0 billion to the US.
- In June, India exported goods worth $8.3 billion to the US.
Further, the exports are expected to decline more in September adding more woes for the exporters in India affecting several sectors including seafoods. Though, pharmaceuticals and smartphones are not subject to tariffs, it does not mean that the 50% US Tariffs is not hurting India. Instead, 50% tariffs on sectors like Textiles, gems and jewellery, leather, shrimp and carpets are under the most pressure, as 30% to 60% of their global exports go to the US.
Hope for India-US Trade Deal
Though India has the power to counterpunch 50% tariffs imposed on Indian goods by the US, a trade deal between India and the United States could be imminent. A US delegation arrived in India on September 16th to negotiate a trade deal, marking the first time since Trump imposed 50% tariffs.