Donald Trump's tariff affected Indian exports for three months: Report
&imwidth=600&imheight=450&format=webp&quality=medium "Donald Trump's tariff affected Indian exports for three months: Report")
US President Donald Trump Photograph: (AFP file)
Donald Trump's tariff on India: The GTRI report noted that the escalation of tariffs closely mirrored the decline in exports. The tariffs have threatened jobs in labour-intensive sectors.
India's exports to the US dropped sharply in August as the Donald Trump administration imposed tariffs on buying Russian oil and weapons. New Delhi's exports to the US dropped 16.3 per cent compared to July. Global Trade Research Initiative (GTRI) said in a report that the country's exports to the United States were worth $6.7 billion, a steep decline compared to theprevious month's figures. The report said that the fall in Indian exports came after the US increased tariffs on Indian exports to penalize it over trade with Russia.
"Exports in August dropped sharply to USD 6.7 billion, marking a 16.3 per cent fall from July. This was the steepest monthly decline of 2025. The fall came after the US doubled duties on Indian goods from 25 per cent to 50 per cent on August 27. Earlier in the month, on August 7, tariffs had already risen from 10 per cent to 25 per cent," the report said.
The report said Indian shipments to the United States fell 5.7 per cent in June to $8.3 billion. In July, the numbers slid 3.6 per cent, reaching $8 billion. In August, the tariffs exacerbatedthe situation.
What the GTRI report says
The GTRI report noted that the escalation of tariffs closely mirrored the decline in exports. It said that the US decision to impose a 10 per cent universal tariff didn't have much impact on India's exports. However, the new tariffs began hurting Indian exports by June as they affected the competitiveness. India's regional rivals could sell cheapergoods because they weren't suffering from Trump's tariffs.
After the August hikes, India's tariffs climbed to 50 per cent.
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"September is expected to show an even steeper fall, as it will be the first month fully exposed to the 50 per cent rate," the report noted.
About one-third of India's exports, including pharmaceuticals and smartphones, remain tariff-free.
But labor-intensive sectors such as apparel, gems and jewelry, leather, shrimp, and carpets, for which the U.S. makes up between 30 and 60 percent of global sales, are facing severe stress.
If the tariff continues, according to GTRI, India could lose as much as USD 30-35 billion in exports to the US.