US Tariffs: Trump's 50% tariffs have hit trade, with India's exports suffering for the third consecutive month.:

News Topical, Digital Desk : GTRI On India's Export: The 50 percent tariff imposed by US President Donald Trump on India has severely impacted Indian exports. This is the third consecutive month of significant export declines. The impact of the US's high tariffs has been felt most strongly on items like gems and jewelry, and leather goods. This is because these goods account for 30 to 60 percent of global exports dependent on the US alone.

Trade hurt by tariffs

According to Ajay Srivastava, founder of Global Trade and Research Initiatives, high US tariffs have crippled some sectors. After the 50 percent US tariffs came into effect in August, India's exports to the US fell by 16.3 percent compared to July, falling to $6.7 billion. This is the largest decline in exports since 2025.

Earlier, in July, India's exports to the US declined by approximately 3.6 percent compared to June, reaching $8.0 billion. In June, exports declined by 5.7 percent compared to May, reaching $8.3 billion.

However, May showed positive signs, reaching $8.8 billion, an increase of 4.8 percent compared to April. India's exports to the United States in April were worth $8.4 billion.

50 percent tariff effective in August

In fact, the month of August posed a significant challenge for Indian exports when the 27 percent Trump tariff went into effect on August 7th. Approximately 20 days later, on August 27th, the tariff rates were raised to 50 percent. GTRI warned that September could see even larger declines, as this will be the first month where the 50 percent tariff will remain in effect for the entire month. Previously, the 50 percent tariff went into effect at the end of August.

Sector-wise impact

Gems & Jewellery: This sector's exports depend on the United States for 40-50 percent. Following the high tariffs, the industry's order book has seen a steep decline.

Leather and leather goods: The US is the largest buyer in this industry. Tariffs are causing Indian leather companies to shift orders to countries like Vietnam and Bangladesh.

Textiles and Garments: The Indian textile sector, already facing stiff competition from China and Vietnam, has now become further weakened in the US market due to expensive tariffs.

Engineering goods: Exports of machinery and auto components are also being affected as the US has increased tariffs on value-added products.