India’s exports to the United States experienced a steep decline in September 2025 after Washington implemented 50 per cent tariffs on the majority of Indian goods. Shipments fell to $5.5 billion, a 20.3 per cent drop from August, marking the fourth consecutive month of decline and erasing over $3.3 billion in trade since May, according to the Global Trade Research Institute (GTRI).
Trade statistics indicate a continuous slide over the past months. Exports had peaked at $8.8 billion in May, the last month of growth, before declining to $8.3 billion in June (–5.7%), $8.0 billion in July (–3.6%), $6.9 billion in August (–13.8%), and finally $5.5 billion in September (–20.3%). September represented the first full month during which most Indian goods were subject to Washington’s 50 per cent tariff regime. The GTRI report highlighted that “the United States has emerged as India’s most severely affected market since the tariff escalation began.”
Several sectors have borne the brunt of the tariff impact, including textiles, gems and jewellery, engineering goods, and chemicals. The sharp contraction in shipments underscores the profound effect of the US tariff escalation, which began at 10 per cent earlier this year, rose to 25 per cent in early August, and ultimately reached 50 per cent by the end of the month. Analysts suggest that the high tariffs have significantly disrupted India’s trade flow to its largest Western market.
The ongoing trade tensions between the two countries add further uncertainty to bilateral commerce. With these tariffs in place, Indian exporters are exploring alternative markets while facing increased costs and declining competitiveness in the US. The situation also raises concerns over long-term trade partnerships and investment confidence, especially in industries heavily reliant on exports to the United States.
As India grapples with the impact, policymakers are evaluating strategic measures to mitigate losses and stabilize export revenues. The sharp decline highlights the vulnerability of Indian industries to sudden policy shifts in global markets and underscores the importance of diversifying export destinations amid geopolitical tensions.
