India’s $ 87 billion exports to the United States due to Trump’s rates
An employee checks the drug reserves at the Pharmacy Store in Hyderabad on July 31, 2025.
Noah Celeum | AFP | Getty
US President Donald Trump on Wednesday faced 50% of the US export after an additional 25% of the duty on Indian goods on the country’s oil purchase from Russia.
According to the executive order, the additional duties executed within 21 days – 25% of the rates on New Delhi will be placed at the top.
Analysts warn that the risk of reducing Indian export attraction in the United States is higher than regional balance.
Deputy Chief Emerging Markets Economist Shilan Shah said in a letter, “India’s attraction as an emerging production center will be greatly reduced.” He estimates that about 2% of India’s GDP and an additional 25% of the US costs are “as big as physical effects.”
India is considered as its largest export partner to the United States. Exports of its total goods in the year ended March 2025 and about $ 434 billion and about 20%or .5 86.51 billion worth of goods According to the latest official statistics, sent to the United States.
Instead of estimating 7% growth before Trump’s announcement, the reduction in exports is that the economy will increase by 6% this year and about 6% of the subsequent subsequently, Shah said.
According to Goldman Sax estimates, a potential% of Indian products can hold a 5% extra rate on its GDP.
According to government data, the United States is the major export of engineering and electronic goods, medicines and pharmaceuticals, gems and jewelry.
Here are the sections here that the outstanding variations in the industry and the plans with the sector-specific rates by Trump are here that there are sections that may probably lose the most:
Engineering goods
Engineering goods, including products such as auto parts, power equipment and industrial machinery, are the largest exports of the United States and globally in India, and $ 17 billion has been recorded in the year ended March.
About 9.1.1.6 billion of these industrial goods or 9 16%of the people were sold in the United States during that time.
Exports of iron, steel and other products 17.07% of the total engineering exportsThe export of non-ferrous metals and products contributed 10.52%. Steel exports already have to face 50% sector rates, which has worsened the outlook of the area as the same size is now large on its other sections.
In June, India’s exports increased by 1.92 percent. An increase in engineering goodsG increased by 1.35% to $ 9.5 billion.
Gems, jewelry, cloth and wear
Gemstones and jewelry and textile and wearing sectors, USA prices are expected to be significantly shocked by the sudden rise in US prices.
Gems and jewelry contributes to the area India’s 7% GDP According to the July July report of the State-Constructive Industries Board, about 5 million workers are employed.
About 33% of people in India’s export of gems and jewelry in the financial year, 2015, went to the United States.
In an interview to CNBC, Executive Chairman of Indian Jewelry Producer Rajesh Export, Rajesh Mehta said that high rates would be a “extra burden” when demanding government support for the sector.??
The textile industry is one of the most labor-intensive sectors in India, which is directly operating 45 million workers All over the country. Like the gems and jewelry, about 34% of the textile exports in the last financial year went to the United States.
“There is no doubt, the new rate is going to take seriously the concept and flexibility of India’s textile and textile exporters, as except for Bangladesh, we will not take on significant duties according to many other countries. A statement on July 30Before the latest rent hike in duty.
Electronics
According to Oxford Economics leading economist Alexandra Herman, India’s electronics sector became “the highest exposed” for the potential risks to be returned to 38% of its exports in the last financial year.
India overturned to be the top exporter of China Smartphones were sold in the United States In the second quarter, Apple Pal has accelerated to move more iPhone assembly in South Asian countries.
Despite being temporary for companies like Apple Pal, Trump announced a discount on smartphones, computers and other electronic goods in April.
This year, the US exports of electronic goods have accelerated, and its exports in March have doubled only over one year.
Pharmaceuticals
Although the pharmaceutical sector is currently exempted from the rate, Trump has threatened the US duty on farm exports, saying that he would initially impose “small rates” at the farm and then increase the rate by 250% in a few years.
According to official statistics, India’s pharma area is exported to US drugs and pharma.
“In India’s chemicals, the United States has a small amount of contact with some extent, but this has a mask of US dependence in the higher pharmaceutical sector,” Herman said the Pharma area is extremely insecure for Trump’s potential rates.
India also exported steel and aluminum to the United States, but the trade of those goods is taxed through a separate executive order.
Overall competitiveness
“The US can be more easily supplying from alternative import sites, but it is very difficult for India to move away from the United States in different sectors,” said Michael Wan, senior economist of MUFG Bank.
India competes against Europe’s taste in pharmaceuticals; Vietnam and Mexico in electronics; Cloths in Cambodia, Sri Lanka, Bangladesh and Vietnam; According to Wan, Israel in gems and jewelry. He said, “If the difference between these rates is a stick, India’s export competitiveness will decrease over time,” he said.
The export-confidence that the nations, which have passed the primary deals with Trump, have dropped from 46% to 20% of the nations. In his latest rate adjustment, Trump reduced the rates on Thailand to at least 5%, Bangladesh’s “transplant” rates, 5%of Bangladesh and 5%from Cambodia to 5%.
According to MUFG estimates, including electronics and pharmaceutical products, the US has been exempted from the export rate of about 32% of India.
Share this content:
Post Comment