Archive · 17 Sep 2025
US Tariffs Cause Steep Decline in Indian Exports
The United States has made it more expensive for American companies to buy things from India.
This has caused a big problem for Indian businesses that sell to the US.
Because of tariffs (extra taxes), Indian exports have dropped for three months in a row.
The tariffs started small but quickly became much bigger.
Sectors like clothing and jewelry are especially affected.
Experts worry that if the high tariffs stay, India could lose billions of dollars in sales and some people may lose their jobs.
The Indian government is being asked to help exporters.
India's exports to the US have fallen for three consecutive months.
The decline began in June and worsened in August due to rising tariffs.
Tariffs increased from 25% to 50% on August 27.
Sectors like apparel, gems, and leather are facing severe stress.
India could lose USD 30-35 billion in exports if tariffs persist.
- Who
- India and the United States
- What
- US tariffs are causing a decline in Indian exports.
- When
- August experienced the steepest decline, following tariff hikes.
- Where
- United States and India
- Why
- The U.S. increased tariffs on Indian goods.
Indian Exporters
United States
Tariff Impact
Indian Exporters
Higher tariffs are detrimental to Indian export businesses, potentially causing job losses and financial instability.
United States
Not available
- Affected Exports
- Apparel, gems, jewelry, leather, shrimp, carpets, pharmaceuticals, smartphones
- Tariff Hikes
- 10% to 25% (August 7), then 50% (August 27)
- August Export Decline
- 16.3%
- June Export Decline
- 5.7%
- July Export Decline
- 3.6%
- Potential Export Loss
- USD 30-35 billion by FY 2026 if tariffs remain
