Trump Tariffs Hit, India’s US Exports Plunge 37.5% in 5 Months

India’s exports to the United States have plunged 37.5% between May and September 2025, marking one of the steepest short-term declines in recent years, according to a report by the Global Trade Research Initiative (GTRI). The sharp fall follows the steep tariff hikes imposed by the Trump administration earlier this year.

The US, India’s largest export market, now levies a 50% tariff on Indian goods — a move introduced as a punitive measure over India’s continued purchase of Russian oil. The tariff started at 10% in April, rose to 25% in early August, and doubled to 50% by late August.

Between May and September, India’s exports to the US dropped from $8.8 billion to $5.5 billion. Products that were previously duty-free suffered the worst hit, with shipments tumbling 47% from $3.4 billion to $1.8 billion. Smartphones and pharmaceuticals emerged as the biggest casualties.

Smartphone exports, which had surged nearly 200% in 2024, fell 58% this year — from $2.29 billion in May to $884.6 million in September. Pharmaceutical exports slipped 15.7%, from $745.6 million to $628.3 million.

Traditional export sectors also saw major setbacks. Gems and jewellery shipments collapsed 59.5%, while solar panel exports declined 60.8%. Labour-intensive sectors — including textiles, chemicals, agri-products, and machinery — recorded a collective 33% drop, from $4.8 billion to $3.2 billion.

Industrial goods such as aluminium, copper, and auto parts experienced milder declines, cushioned by similar global tariff exposure. Aluminium exports fell 37%, copper 25%, and auto parts 12%.

GTRI noted that the tariffs have exposed deep structural vulnerabilities in India’s export ecosystem, warning that the prolonged trade strain could erode India’s competitiveness in key global markets.