India’s nearly $87 billion exports to U.S. under threat due to Trump tariffs
A woman looks at the jewels exhibited in a jewel shop.
Pancaj & insy Shah | Gulfimages | Getty Images
Since US President Donald Trump’s new Delhi’s new Delhi’s oil purchases from Russia, 25% will enter into force, India’s exports to the United States will invite a 50% steep tariff on Wednesday.
Analysts warn that US tariffs are at risk of significantly reduce the charm of exports to the US compared to regional peers.
“India’s attractiveness will be weakened to a great extent as a developing production center,” he said, “India’s attractiveness will be weakened,” Capital Economics. He said. He estimates that US expenditures use about 2% of India’s GDP, and the extra 25% tariff is “big enough to have a financial impact”.
India counts the US as the largest export partner. The export of total goods reached approximately 434 billion dollars and approximately 20%per year, which ended in March 2025. 86.51 billion dollars of goods According to the latest official data, it was sent to the USA.
The Shah said that the decrease in exports in exports due to tariffs will mean that the economy approached 6% and the next magic this year rather than 7% growth forecast before Trump’s announcement.
According to Goldman Sachs’ predictions, the potential on Indian products is 50% extra tariff, GDP can earn a total of 0.6 points.
According to government data, India’s major exports to the United States engineering and electronic goods, drugs and drugs, jewels and jewels.
With a significant variance between industries and the lack of clarity on Trump’s plans with sector -specific tariffs, the segments that will lose the most since they are exposed to the US market:
Engineering goods
Engineering goods, including products such as automobile parts, electric equipment and industrial machines, have been the largest export of India to the United States and globally globally and reached approximately $ 117 billion per year in March.
During this period, approximately 19.16 billion or approximately 16%of these industrial goods were sold to the USA.
Iron, steel and other product exports, 17.07% of total engineering exportsNon -iron metals and product exports contributed by 10.52%. Steel exports are currently faced with 50% sectoral tariffs, and the same tax is now worshiped because it looks great in other engineering goods.
India’s total exports increased by 1.92% in June. Increase in engineering goodsIt increased by 1.35 % to 9.5 billion dollars.
Stones, jewels, textiles and clothes
Stones and jewels and textile and clothing sectors are also expected to be significantly shaken by a sudden walk in US tariffs.
Stones and jewelery industry contribute 7% of India’s GDP According to the July report of a state -backed industrial organ, approximately 5 million workers employ.
Approximately 33% of India’s jewels and jewelery exports went to the USA in the 2025 fiscal year.
Rajesh Mehta, Chairman of Rajesh Export Executioner producer of Indian jewelery manufacturer, said in an interview with CNBC at the beginning of this month, while calling for state support to the sector, higher tariffs would be “additional burden”..
Textile is one of the most labor -intensive sectors in India, which directly employs. 45 million workers nationwide. Similar to stones and jewels, approximately 34% of textile exports went to the USA in the last financial year.
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“Certainly, the new tariff rate will seriously test the determination and flexibility of the US textile and clothing exporters, because we will not have a significant difference in duties against many other countries, except for a greater share of the US market.” Expression of 30 JulyBefore the last hike in the task is announced.
Electronic
According to Alexandra Hermann, the leading economist of Oxford Economics, India’s electronic sector relied on the potential risks of tariff exemptions, relying on 38% of its last financial export to the United States. Currently, several electronic goods are exempt from tariffs.
India passed China to become the most exporter Smartphones, Apple’s more iPhone assembly to the country to move to the country after accelerating to move in the USA was sold in the US in the second quarter.
Although temporary, temporary for companies such as Apple, Trump announced in April that he was exempted from schedules of smartphones, computers and other electronic products.
India’s exports of electronic goods of the United States accelerated this year and its exports in March rose to $ 2.76 billion more than twice compared to the previous year.
Pharmaceuticals
While the pharmaceutical industry is currently exempted from tariffs, Trump threatened tasks on drug exports to the United States in an interview with CNBC Trump and said that he would initially apply a “small tariff” to drugs and then increase this rate to 250% in a few years.
According to official data, India’s pharmaceutical sector has high dependence on US buyers.
“[India’s] In general, the US exposure of chemicals is less, but it masks the US addiction of the high pharmaceutical sector. “He said.
India also exported steel and aluminums to the United States, but in these goods, trade is taxed by a separate executive order.
General competitiveness
“The United States can make it easier for materials from alternative imports, but India is much more difficult to diversify from different sectors from different sectors,” Mufg Bank senior economist Michael Wan said. He said.
India competes against Europe’s liking in drugs; Vietnam and Mexico in electronics; Cambodia, Sri Lanka, Bangladesh and Vietnam; According to Wan, Israel is in jewelry and jewelery. “If these tariff differences stick, India’s export competitiveness will probably be worn over time,” he said.
Among the countries based on export -based countries with Trump, Vietnam saw that their tariffs decreased from 46% to 20%. In the latest tariff arrangement, Trump increased its tariffs in Thailand, 35% to Bangladesh and 19% to 20% from Cambodia to 20%.
Mufg’s estimates, including electronic and pharmaceutical products, about 32% of India’s exports to the United States are currently exempt from tariffs.
– Ayushi Jindal from CNBC contributed to this story.
