Tariff Troubles: Indian Exports to US Face Steep Decline

India's exports to the United States experienced a significant decline for the third consecutive month in August, as the result of increased tariffs by Washington, according to the Global Trade Research Initiative (GTRI). August exports sharply dropped to USD 6.7 billion, a 16.3% fall from July, marking the steepest monthly decline of 2025.

This downturn began in June, after a 4.8% increase in May brought exports to USD 8.8 billion, followed by a 5.7% decline in June to USD 8.3 billion. Further, a 3.6% dip occurred in July, with August's plunge deepening losses. GTRI indicates that tariff escalation mirrors the export decline. Initially, Indian goods entered the U.S. with regular duties until April, when a 10% universal tariff was imposed, causing minimal immediate impact.

By August, tariffs surged first from 10% to 25% and quickly doubled to 50% within weeks, leaving exporters scrambling. GTRI suggests September could see an even more substantial decrease. While some exports remain tariff-free, crucial sectors like apparel and electronics face severe pressure, risking up to USD 30-35 billion in losses by FY 2026. Stakeholders are pressing for government support to avert broader economic setbacks and job losses. (ANI)