As US Exports and Imports Fall in August, China Becomes India’s Largest Trade Partner

Chennai: As mutual tariffs and penal tariffs entered into force in August, the US exports fell by 16.3 percent, respectively. However, US imports fell 20 percent sharper in August in July. With this, the US has once again replaced China as India’s largest trade partner.

August shipments to the USA fell from $ 8 billion to 16.3 percent in July to 6.7 billion dollars. US tariffs increased from 10 percent to 7 percent in April to 25 percent and 50 percent on August 27, first due to mutual tariffs and then penalty tariffs.

India’s exports have been falling since May. It was recorded from $ 8.8 billion in May, $ 8.3 billion in June and then to 8 billion dollars in July, but the front of the goods before mutual tariffs pushes worldwide trade.

However, when the tariffs came into force, exports fell by 16.3 percent in August. Interestingly, imports from the United States fell more steep. In August, imports from the United States fell by 20.8 percent from $ 4.5 billion in July. Import was 18 percent low in August against the same month last year.

This was seen in the total trade of goods in August that the United States fell to $ 10.4 billion. On the other hand, China has increased its imports to India by 0.67 percent on the basis of Yoy. Exports increased by 22.38 percent to $ 1.21 billion. This saw that total trade increased to 12.1 billion dollars. However, in August, China emerged in India’s largest trade partner.

According to GTRI estimates, if 50 percent tariffs remain in the 2026 financial year, India may lose $ 30-35 billion in US exports. This will shrink the US trade further in the coming months. It is likely to remain in the upper home of China for all financial.

China was the best trade partner in India’s FY14 to FY18 and FY21. In FY24, China’s bilateral trade with India was higher than the US.

However, in FY22, FY23 and FY25, the United States became the largest trade partner in India. Before the FY14, the UAE was the largest trade partner in India and now remains in the third point.