India’s exports to the United States, its biggest overseas market have taken a sharp hit, with a new report from the Global Trade Research Initiative (GTRI) warning that steep tariff hikes are reversing recent gains. The think tank’s assessment, released on Saturday, points to an increasingly protectionist trade environment in Washington that is beginning to squeeze key Indian sectors.
Between May and October 2025, India’s shipments to the U.S. slid sharply, dropping 28.5% from $8.83 billion to $6.31 billion, the report noted.
The downturn closely tracked Washington’s swift tariff escalation, starting at 10% on April 2, jumping to 25% by Aug. 7, and then doubling to 50% later that month. This steep climb has left Indian products among the most heavily taxed in the U.S. market, the report added.
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But Chinese goods were hit with tariffs of around 30%, while Japanese exports faced duties closer to 15%, underscoring how sharply Indian shipments were targeted.
Even categories shielded from tariffs, including smartphones, pharmaceuticals and petroleum products were not spared. These tariff-exempt goods made up 40.3% of India’s exports to the U.S. in October, yet their value still plunged 25.8%, dropping from $3.42 billion in May to $2.54 billion in October, a loss of $881 million, the GTRI noted.
The report said that products subject to uniform global tariffs, mainly iron, steel, aluminum, copper and auto parts, made up only 7.6% of India’s exports to the U.S. in October. Shipments in this group dropped 23.8% between May and October, falling from $629 million to $480 million, a decline of about $149 million, it added.
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The sharpest hit came in labor-intensive sectors, where India was the only country subjected to a 50% tariff. These products accounted for 52.1% of exports in October, yet their value dropped 31.2%, sliding from $4.78 billion in May to $3.29 billion in October, wiping out nearly $1.5 billion in just five months, the report said.
Monthly shipments kept sliding, dropping from $2 billion in June to $1.52 billion in July, then plunging to $964.8 million in August and slipping further to $884.6 million in September. Exports finally showed some recovery in October, rising to $1.5 billion, the report noted.
Pharmaceutical exports also saw a slight softening, edging down 1.6% from $745.6 million to $733.6 million. Petroleum products followed a similar trend, slipping 15.5% from $291 million in May to $246 million in October. The report noted that labor-intensive segments, including gems and jewellery, textiles, garments, chemicals and seafood also recorded declines in outbound shipments.