India’s export landscape is under severe strain as sweeping tariffs imposed by the United States under Donald Trump’s trade-policy agenda deliver sharp blows to shipments to key markets. According to recent analysis, exports from India to 15 of its 20 top trading destinations have declined, highlighting a worrying trend of global demand slack and rising policy-barrier headwinds.

Key Highlights

• Trump’s tariff policy triggered a steep decline in India’s exports across major global trading markets.
• Exporters face rising costs, shrinking margins, and increased competition as tariffs hit key industries.

At the heart of the squeeze is the U.S. decision to raise duties to as high as 50 percent on Indian goods, ostensibly linked to India’s continued procurement of Russian oil. The Indian export community is feeling the pain: labour-intensive sectors that had previously relied heavily on the American market are now sharing accounts of shrinking margins, production cuts and lost competitiveness.

One major export dossier reveals a 37.5 percent drop in shipments during May-September 2025 across sectors once deemed robust—smartphones, pharmaceuticals, jewellery and more. The shift is stark: goods that could previously be shipped to the U.S. with manageable cost burdens can now face punitive tariffs that render them non-competitive versus rival producers in Vietnam, Bangladesh or China.

Also Read: Trump's 500% Tariff Threat Puts India's Oil Imports at Risk

Indian industry-bodies are already sounding alarm bells, pointing to factory shutdowns in key hubs and warning of job losses that could ripple through supply-chains and regional economies. Meanwhile the Indian government is pivoting: plans are afoot for export market diversification, increased trade-promotion support and relief for sectors most exposed to U.S. tariffs. India is aggressively looking beyond the U.S., targeting markets in Latin America, Africa and Southeast Asia to soften the blow.

Overall, the data suggests that the tariff shock is not isolated to one product line or country—it is a systemic stress-test for India’s external-trade model as global trade dynamics shift. The challenge ahead will be operational: can exporters adapt quickly, and can policy-makers support structural realignment of industries so that India remains competitive despite policy-induced headwinds?