Indian goods exports to the US rose to $87 billion in 2024, with gems and jewellery ($8.5 billion), pharma ($8 billion) and petrochemicals ($4 billion) leading the list.
However US president Donald Trump’s latest tariffs imposed on its longstanding trading partner is a huge blow to Indian businesses.
S.C. Ralhan, president of The Federation Of Indian Export Organisations, said: “This is a major setback for Indian exporters, especially in sectors like textiles, footwear, and furniture, as the 25% tariff will render them uncompetitive in the US market against rivals from Vietnam, China, and elsewhere.
“However, we remain hopeful that both countries will work towards a bilateral trade agreement.”
Here are some key Indian exports that will be hit by Trump tariffs:
1 Smartphones
India has overtaken China to become the top exporter of smartphones to the U.S., according to research firm Canalys. Smartphones assembled in India accounted for 44% of U.S. imports of those devices in the second quarter, a significant increase from just 13% in the same period last year. Total volume of smartphones made in India soared 240% from a year earlier, Canalys said. Trump’s announcement of trade tariffs puts question marks on what next for smartphone exports to the US.
2 Jewellery
The United States is the Indian jewellery’s single largest market, accounting for over $10 billion in exports – nearly 30% of the industry’s total global trade.
Kirit Bhansali, chairman, Gem And Jewellery Export Promotion Council India, said: “This is a deeply concerning development. The Indian gem and jewellery sector, in particular, stands to be severely impacted. A blanket tariff of this magnitude will place immense pressure on every part of the value chain.”
3 Talent pool
India has been responsible for giving the US many of its top executives and CEOs in blue chip companies. The country is also responsible for providing talent to key sectors such as technology and finance. Trump’s tariffs thwart that supply of a talent pool of millions.
Hardha Vardham Agarwal, president, Federation of Indian Chambers of Commerce and Industry said: “We hope that this imposition of higher tariffs will be a short-term phenomenon and that a permanent trade deal between the two sides will be finalised soon.
“The aim is to secure a beneficial pact rather than a hurried deal that gives short term benefit but may result in adverse outcomes in the long term.
“It is also important to note that India offers a large market for U.S. businesses and many of the large companies from the U.S. benefit from leveraging the demand as well as the skills and talent pool that we have to offer.
4 Car manufacturing and components
Indian behemoths such as Tata Motors and Bharat Forge fear a direct decline in US demand, especially for high-value vehicles and precision parts as a result of the tariffs. Job losses could also be on the cards as orders from the US nosedive following Trump’s tariffs.
Ranen Banerjee, partner pf Economic Advisory, Pwc India, said: “Higher tariffs for India compared to countries it competes with, for exports to the US, are going to be challenging.
However, the expectation is that the trade deal is likely to be finalised shortly and hence the period of applicability of these higher tariffs could be short.”
5 Electronics
Contract manufacturers electronics and solar panels are expected to face severe pricing and volume pressure, experts say. It comes as big companies have been facing pressure to increase sales in the face of shrinking margins even before Trump announced trade tariffs on India.
Agneshwar Sen, trade policy leader, EY India said, “The decision to raise the US tariff to 25% on Indian exports is an unfortunate development, particularly given the strong strategic partnership that has been steadily built between India and the USA in recent years.”
6 Agricultural products
Agriculture is a key battleground in Trump’s escalating trade war. India exports a variety of agricultural products to the United States, including marine products, rice, and spices. While the total agricultural trade between the two countries is modest, India’s exports to the US are more significant than its imports.
Key exports include seafood, which accounts for a large portion of India’s total seafood exports to the US, and rice, with a notable amount exported annually.
7 Footwear
Indian footwear exports, including both leather and non-leather, have seen a notable increase, with the CLE (Council for Leather Exports) reporting a nearly 25% rise in the 2024-2025 financial year, reaching $5.7 billion. The nation’s footwear industry was heavily banking on US exports to prop up its business but Trump’s latest penalty will prompt a rethink over sales strategies.
8 Furniture
Half of all furniture made by Indian manufacturers is exported into the American market – the world’s most valuable market for furniture, according to new data produced by the Indian Ministry of Commerce and Industry.
Sakshi Gupta, principal economist, HDFC Bank, Gurugram, said: “For now, the announcement of 25% tariffs is likely to cause volatility in the FX market with mounting depreciation pressure on the rupee. Although the RBI is likely to intervene tomorrow to tamp down the depreciation pressure.”
9 Chemical exports
In 2023, the United States was a major export destination for Indian chemical products, with $16.4 billion worth of exports. India’s chemical exports to the US have seen growth, particularly in organic chemicals and specialty chemicals. The US is a key market for Indian chemical companies, and some are even seeing a competitive advantage due to tariffs on exports from other countries like China.
10 Textiles
India is a significant exporter of textiles and apparel to the United States. In 2024, India’s textile exports to the US were valued at $10.5 billion, representing 28.5% of its global textile exports.
The US is a major market for India, and Indian exporters are seeking to capitalise on opportunities arising from tariff changes impacting competitors like China and Mexico. However the tariffs are expected to scupper these plans and spell uncertainty for thousands of apparel businesses across India.
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