New Delhi
India’s exports to the United States, its largest trade partner, have dropped sharply due to steep tariff hikes, according to a Global Trade Research Initiative (GTRI) report. Between May and August 2025, shipments fell 22.2% from $8.8 billion to $6.9 billion. The US raised import duties on Indian goods from 10% in early August to 25% mid-month and to 50% by the end of the month. September will be the first full month at the higher rates, which could severely impact labour-intensive sectors including textiles, gems and jewellery, seafood, chemicals, and solar panels.
GTRI highlighted a surprising trend — tariff-free goods such as smartphones, pharmaceuticals and petroleum products posted the steepest 41.9% decline to $1.96 billion. Smartphone exports plunged 58% to $965 million, amid signs major manufacturers may shift production to Vietnam or China. Pharmaceutical exports fell 13.3% to $647 million.
Goods facing uniform tariffs slipped only 4%, but Category C items targeted by 50% duties fell 10.8% to $4.3 billion. Seafood, textiles, and solar panels showed double-digit drops. GTRI urged urgent investigation into the slump and called for faster policy support, including subsidies, duty remission and liquidity measures, to prevent lasting damage to India’s export competitiveness.
