India U.S. tariff pressure trade diversification, India continues to face U.S. tariff pressure, yet exporters have protected overall performance through rapid diversification and strategic market shifts.
U.S. Tariffs Hurt Key Sectors but Leave Others Unaffected
Between September and November 2025, there has been a substantial increase in shipments to the United States from India of smartphones (+237%) as well as electrical machinery (+15%). However, these increases have only partially compensated for the loss of revenues in some of the largest industries affected by U.S. tariffs. Examples include exports of pearls and precious stones which have dropped almost 78%, gold jewellery by 39%, cotton fabric by 23%, marine products by 17%, and ready-made garments made from cotton by 4.6%.
The presence of tariffs has had a very real negative impact on all of these sectors. According to several economists, there is a strong possibility that Washington will increase tariffs on India in the near future based on statements made by President Trump regarding the fact that India continues to buy Russian oil. GTRI states that India’s exports to the U.S., as of May to November 2025, were down by 20.7%. If tariffs increase, economists believe it will only make things worse, India U.S. tariff pressure trade diversification.
U.S. Tariffs Hurt Key Sectors but Leave Others Unaffected
Exporters of fish and seafood responded quickly. The growth of marine products in China and Europe allowed fish and seafood exporters a way to grow shipping out from India. In fact, 23% of Chinese imports from India are marine products; 124% of Belgian imports from India were marine products; 56% of Dutch imports from India were marine products; 65% of German imports from India were marine products, and 23% of Italian imports from India were marine products. Additionally, in 2006, India became a new exporter of marine products to the European Union (i.e., Spain) with $50 million sales of marine products.
Similarly, cotton exporters found success in many of the same countries when the rupee fell in value and made them less reliant on the United States. According to many industry leaders, these changes show the ability of Indian exporters to adapt rapidly under pressure.
Trade Talks Continue as India Seeks Clarity
India and the United States continue to negotiate over the 50% tariff system; there have been six rounds of discussions so far. The United States requested greater agricultural access from India and India continues to maintain that they want to protect their farmers and MSMEs, with India denying the request.
Although these negotiations are ongoing, India’s exports to the United States grew 22.6% in November of 2009 and 11.3% between April and November of 2009. This offers evidence of strong export resilience through rapid diversification and increased shipments of non-tariff items.
Each party wishes to conclude a trade deal that will assist each party in achieving their goal of a cumulative bilateral trade value of $500 billion by 2030.
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