India’s Exports to US Plummet by 37% as Trump Tariffs Bite

US President Donald Trump imposed a steep 50% tariff on India. This action has severely hit India’s overall exports to America.

Trump Tariffs Impact on India’s Exports

Trade talks between the US and India are currently ongoing. US President Donald Trump earlier imposed a 50% tariff on Indian goods. This tariff is now significantly impacting Indian exports. Shipments from India to the US are rapidly decreasing. India’s exports to America fell by $3.3 billion over four months. The drop was 37.5% between May and September 2025. Exports decreased from $8.8 billion to $5.5 billion. This marks one of the biggest short-term collapses in years.

America’s Escalating Tariffs

The US initially set a 10% tariff on India early in the financial year. This duty was part of America’s tariff increase. By August, the tariff had escalated to 50%. The US first placed a 25% tariff on India. An additional 25% tariff followed. This was due to India’s ongoing oil purchases from Russia.

Sectors Feeling the Tariff Shock

Labor-intensive sectors were majorly affected by the tariffs. These include textiles, gems and jewelry, chemicals, farm produce, and machinery. Revenue from these sectors dropped by 33%. Export earnings decreased from $4.8 billion to $3.2 billion. Tariff-free products also saw a fall in exports. Shipments of these goods fell by 47%. They dropped from $3.4 billion to $1.8 billion. Smartphones and medicines suffered the most significant impact.

Sharp Decline in Key Products

Smartphone exports plunged by 58% compared to last year. Exports were $2 billion in June. They fell to $884.6 million by September. The pharmaceutical sector’s exports declined by 15.7%. Industrial metals and auto parts also saw a dip in exports. These sectors collectively recorded a 16.7% decline. Specific metal exports also dropped. Aluminum exports decreased by 37%. Copper saw a 25% fall. Auto parts fell by 12%. Iron and steel exports dropped by 8%.

Who is Taking India’s Market Share?

Gems and jewelry exports decreased severely. They dropped from $500.2 million to $202 million. This is a massive 59.5% reduction. Units in Surat and Mumbai have been negatively affected. Thailand and Vietnam are now replacing India in the US market. India faces a 50% tariff. China’s tariff is 30%. Vietnam’s tariff is lower at 20%.