US Tariff Hike Hits Indian Goods Hard — Exports Plunge by 28%

India’s export sector has taken a major blow after the United States sharply increased tariffs on multiple Indian products. Fresh trade data reveals that from May to the end of October, India’s total exports to the US dropped by 28.5%, marking one of the steepest declines in recent years.

According to official figures, the value of exports slid from $8.83 billion to just $6.31 billion after the US under President Donald Trump imposed tariff hikes of up to 50% on Indian goods.

The Global Trade Research Initiative (GTRI) reported that since the United States is India’s largest export destination, these elevated tariffs have severely disrupted India’s external trade performance.

Why Did the US Increase Tariffs

The tariff hike took place in three phases:

Date / Phase      Tariff Rate on Indian Goods

2 April   10%

7 August              25%

Late August        50%

GTRI noted that the US raised tariffs in retaliation against India’s continued purchase of Russian crude oil. Interestingly, Washington adopted a far softer stance toward other countries:

Tariffs on China were slashed from 150% to 30%

Tariffs on Japan were capped at just 15%

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India–US Talks Fail to Make Breakthrough

Despite multiple rounds of discussions, negotiations between New Delhi and Washington have not yet produced a solution. Commerce Minister Piyush Goyal earlier expressed hope for a positive outcome, but prolonged delays have caused anxiety across India’s export-dependent sectors.

High-level American delegations have traveled to India, and Indian teams have visited Washington, but both sides are yet to announce any final agreement.

Major Sectors Hit: Pharma, Smartphones & Petroleum

Some of India’s top export categories have suffered significant setbacks:

Pharma, smartphones and petroleum — which earlier accounted for 40.3% of exports — have fallen to 25.8%

Export value dropped from $3.42 billion in May to $2.54 billion in October

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Steel, iron and auto-parts saw a 23.8% decline

Gems & jewellery, solar panels, textiles, garments, chemicals and seafood plunged from 52.1% to 31.2%

Sector-Wise Export Performance (May–Oct)

Sector   Earlier Value      Current Value    % Decline

Smartphones     $2.29 billion        $1.50 billion        36%

Pharma —           —           1.6% decline

Petroleum          —           —           15.5% decline

Steel, Iron, Auto Parts    —           —           23.8% decline

Gems, Jewellery, Solar, Textiles, Chemicals, Seafood        $4.78 billion        $3.28 billion        31.2% decline

(Where exact pre/post values were unavailable, percentages are retained.)

Smartphone Exports: Sharpest Fall in Six Months

Smartphones — one of India’s fastest-growing export categories — witnessed a 36% decline between May and October:

May: $2.29 billion

October: $1.50 billion

After three consecutive months of decline (July–September), the industry saw a slight recovery in October.

GTRI Warning: Immediate Support Needed

The Global Trade Research Initiative has urged the Indian government to act swiftly. The agency warned that without timely policy support, continuing declines could push several Indian industries into deep financial stress in the coming months.