As Trump Wields Tariff Stick Again, India's Exports to US Have Declined for Four Consecutive Months

Following the US imposition of 50% tariffs on most Indian goods, India's exports to the United States have plummeted.

According to a recent report by the Global Trade Research Initiative (GTRI), based in Delhi, India, India's exports to the US fell to $5.5 billion in September 2025, down 20.3% from August, marking the fourth consecutive monthly decline.

GTRI data shows that in June this year, India's exports to the US dropped to $8.3 billion from $8.8 billion in May (the last month with a year-on-year increase), a month-on-month decrease of 5.7%. In July, they fell to $8.0 billion, a drop of 3.6%. In August, they further declined to $6.9 billion, a decrease of 13.8%. Finally, in September, they fell to $5.5 billion, a drop of 20.3%, representing the largest single-month decline in India's exports to the US so far this year.

Sector-wise, key Indian industries most affected by the US tariffs include textiles, gems and jewellery, engineering products, and chemicals, among others.

The sharp decline in India's exports to the US underscores the growing impact of the Trump tariffs. The US tariff rate on Indian goods initially stood at 10%, rose to 25% in early August, and reached 50% by the end of August.

US President Trump signed an executive order on July 31, imposing a 25% tariff on Indian goods exported to the US starting August 7. In early August, Trump signed another executive order, citing India's continued purchases of Russian oil, to levy an additional 25% tariff on Indian goods on top of the existing 25%, bringing the total tariff rate to 50% - significantly higher than tariffs imposed on other Asia-Pacific countries. The additional 25% tariff took effect on August 27.

Against the backdrop of India's exports to the US having already declined for four consecutive months, Trump's recent renewed tariff threats against India have further clouded the country's export outlook.

On the 19th local time, Trump reiterated that Indian Prime Minister Modi had told him India would stop buying Russian oil. However, he simultaneously warned that if India fails to do so, it will continue to pay "massive" tariffs.