Editor’s Note
This article highlights a significant downturn in India’s exports to the U.S., following a series of steep tariff increases. The data underscores the immediate and substantial impact of trade policy changes on bilateral commerce.
India’s exports to the United States have dropped sharply over the last five months after the US increased import tariffs on Indian goods, doubling them from 25% to 50%. A report by the Global Trade Research Initiative (GTRI) shows that exports fell 28.5%, from $8.83 billion in May 2025 to $6.31 billion in October 2025.
The decline began after the US imposed a series of steep tariff hikes on Indian goods — 10% on April 2, 25% on August 7, and finally 50% by the end of August. The latest increase followed US President Donald Trump’s allegations that India was helping fuel Russia’s war effort in Ukraine.
With these duties, Indian products have now become some of the most heavily taxed in the American market. In contrast, Chinese goods face about 30% tariffs, while Japanese exports are taxed at roughly 15%.
GTRI grouped India’s exports to the US into three categories:
Tariff-free goods
These include smartphones, medicines and petroleum products. They made up 40.3% of exports in October, but still fell 25.8%, from $3.42 billion in May to $2.54 billion in October.
Goods facing the same tariff as other countries
These include iron, steel, aluminium, copper and auto parts. They formed 7.6% of exports in October and fell 23.8%, from $629 million to $480 million.
Labour-intensive goods facing 50% tariff
These form 52.1% of exports in October and dropped the most, 31.2% to $3.29 billion from $4.78 billion.
Almost $1.5 billion worth of exports were lost in just five months.
Smartphones:
India’s most exported product to the US, fell 36%, from $2.29 billion in May to $1.50 billion in October. Monthly exports went from $2.0 billion in June and $1.52 billion in July to $964.8 million in August, $884.6 million in September, before rising to $1.5 billion in October.
Medicines:
Pharmaceutical exports dipped 1.6%, while petroleum products dropped 15.5%, from $291 million to $246 million.
Fuel:
Motor gasoline exports also declined from $68.3 million to zero.
Metals and auto parts also hit
Even though tariffs for these goods remained the same for all exporting countries, India’s exports still dropped due to slowing demand in the US:
Category | May exports | October exports | Decline (%)
Overall Metals & Auto-Linked Products | $629 million | $480 million | -23.8%
Aluminium | $102.6 million | $58.2 million | -43.3%
Iron & Steel | $261.9 million | $211 million | -19.5%
Auto Parts | $183.3 million | $142.5 million | -22.2%
Copper | $31.8 million | $27.5 million | -13.5%
Gems and jewellery
The exports of gems and precious jewellery fell 27.3%, from $500.2 million to $363.8 million.
Category | May exports | October exports | Decline (%)
Overall Gems & Jewellery | $500.2 million | $363.8 million | -27.3%
Traditional Gold Jewellery | $251.1 million | $211.3 million | -15.9%
Diamond-Studded Jewellery | $92.8 million | $74.9 million | -19.3%
Cut & Polished Diamonds | $193.5 million | $138.1 million | -28.7%
Jewellery Made With Lab-Grown Diamonds | $62.5 million | $76 million | +21.5%
Raw Lab-Grown Diamonds | $34.9 million | $7.1 million | -79.5%
Solar panels
Exports crashed 75.7%, taking the figure from $202.6 million to $49.2 million. Meanwhile, China and Vietnam, which pay only 20% tariffs, took over the market and pushed India’s renewable exports at risk.
Textiles and garments
Exports fell 31.9%, from $944 million to $643 million.
Category | May exports | October exports | Decline (%)
Overall Textiles & Garments | $944 million | $643 million | -31.9%
Garments | $515.4 million | $306.1 million | -40.6%