Archive · 4 Jan 2026
Indian Exporters Face US Tariff Challenges
Indian exporters and state representatives recently met to discuss problems they're facing.
High US tariffs, which started in August 2025, have led to canceled orders and delayed payments.
This is making it harder for India to sell goods like gems, spices, and pharmaceuticals to the US.
Other issues include higher costs for raw materials and a shortage of testing labs to check product quality.
Some states also mentioned problems with shipping containers and high freight rates.
The government is trying to find solutions to these problems to help exporters.
In November 2025, India's exports to the US picked up to $7 billion, showing a 23% year-on-year growth.
However, this is still lower than pre-tariff levels, and the recovery is mainly due to items not affected by the tariffs, like petroleum products and electronic goods.
Labour-intensive sectors are still struggling with sharp negative growth in shipments.
High US tariffs of 50% have led to canceled orders and delayed payments for Indian exporters.
Exporters face challenges due to costlier raw materials and a shortage of testing facilities.
States like Rajasthan and Uttarakhand highlighted the need for more testing labs to meet international standards.
Assam and Gujarat reported issues with shipping container shortages and high freight rates.
The government is pushing for new markets and has signed free trade agreements with Oman, New Zealand, and the UK in 2025.
India's exports to the US picked up in November to $7 billion, a 23% year-on-year growth, but still lower than pre-tariff levels.
The recovery in exports is mainly due to items exempt from the 50% tariff, such as petroleum products and electronic goods.
Labour-intensive sectors are reporting sharp negative growth in shipments.
- Who
- Indian exporters, state representatives, industry bodies, and the US government
- What
- Challenges faced by Indian exporters due to US tariffs, raw material costs, and lack of testing facilities, along with a partial recovery in exports
- When
- November 25, 2025, with tariffs implemented in August 2025 and a sequential decline from May to October
- Where
- Board of Trade meeting chaired by Piyush Goyal and export activities between India and the US
- Why
- To address issues affecting India's export competitiveness and the impact of US tariffs on Indian exports
- Meeting Date
- November 25, 2025
- Chairperson
- Piyush Goyal, Union Commerce and Industry Minister
- US Tariffs
- 50% on various Indian products
- Export Growth in November
- 19% driven by non-tariffed products
- Free Trade Agreements Signed in 2025
- Oman, New Zealand, UK
- Anti-Dumping Investigations by US
- Nine probes on Indian industrial items since July 2024
- Testing Facilities
- Shortage flagged by multiple states and sectors
- Raw Material Costs
- 15-20% higher domestically than internationally
- November Exports to US
- $7 billion, 23% year-on-year growth
- Sequential Decline Period
- May to October
- Exempt Items
- Petroleum products, electronic goods
- Affected Sectors
- Labour-intensive sectors
Sources
Exports hurt: States flag facility and testing gaps at Board of Trade meeting
Indian Exporters Diversifying to Other Markets to Offset US Tariffs
Exports to US recover slowly after sharp slide, forex losses large
Tariffs crimped hiring in 2025. Why this year looks better.
