APRIL 11, 2025

Impact of US tariffs on Indian exporters: 6 key insights

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The US has imposed new tariffs on Indian goods, affecting key export sectors in India. Here's what you need to know about these developments.​

On April 2, the US imposed a 26% tariff on Indian imports, impacting sectors like electronics, seafood, and gold, while pharmaceuticals and semiconductors remain exempt.

Major export sectors at risk

India's exports to the US could decline by $5.76 billion in 2025 due to tariff hikes, with electronics and seafood among the hardest-hit sectors.

Potential economic impact

However, on April 9, President Trump announced a 90-day pause on most tariffs, offering a window for trade negotiations, though tensions with China persist. 

Temporary relief with a 90-day pause

Indian exporters are exploring market diversification and cost optimisation strategies to mitigate the impact of US tariffs on their businesses.​

Strategic moves by Indian exporters

India is considering export support measures, including interest subsidies and diversification incentives, to assist affected exporters.

Government’s response

To reduce reliance on the US, India is expanding trade ties with the EU and ASEAN, aiming for a more balanced export portfolio.

Diversifying export markets

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