GTRI on India’s Export: Indian exports have been badly affected by 50 percent tariffs imposed on India by US President Donald Trump. This is the third consecutive month when there has been a tremendous decline in exports. The most impact of the high tariff of US has been seen on things like gems and jewelery, leather made items. The reason for this is that the total global exports of these items are dependent on America only from 30 to 60 percent.
Trade hurt by tariff injury
According to Ajay Srivastava, the founder of Global Trade and Research Initiatives, the High Tariff of America has defeated some sector. In the month of August, after 50 percent of the US tariffs were effective, US exports from India declined by 16.3 percent over July and fell to $ 6.7 billion. This is the biggest decline in exports in the year 2025.
Earlier in the month of July, the US exports from India declined by about 3.6 percent compared to June and it increased to $ 8.0 billion. At the same time, exports fell by 5.7 percent in June and it increased to $ 8.3 billion.
However, if we talk about May, positive signs were seen in this month and it increased to $ 8.8 billion with an increase of 4.8 percent compared to April. In the month of April, 8.4 billion was exported from India to America.
50 percent tariff effective in August
In fact, the month of August became a big challenge for Indian exports when 27 percent Trump tariff came into effect on 7 August. After about 20 days, the tariff rates were increased to 50 percent on August 27. GTRI warned that a big decline can be seen in the month of September, as this will be the first month when 50 percent tariff will be applicable throughout the month. Earlier in late August, 50 percent tariff was effective.
Sector-wise impact
-
Gems & jewelery: 40-50 percent export of this sector depends on America. After the high tariff, there has been a direct decline in the order book of this industry.
-
Leather and Leather Goods: America is the biggest buyer of this industry. Due to the tariff, orders of Indian leather companies are shifting to countries like Vietnam and Bangladesh.
-
Textile and Garments: The Indian textile sector, already facing strict competition between China and Vietnam, has now weakened the US market due to expensive tariffs.
-
Engineering Goods: Export of machinery and auto components is also being affected, because America has also increased tariffs on value-added products.

