---
title: "Trump imposes 50% tariff, India's exports to the US plummet"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/261482810.md"
description: "After Trump imposed a 50% tariff on Indian goods on August 27, India's exports to the U.S. plummeted by 20% in September, with a cumulative decline of nearly 40% over the past four months, marking the largest drop in recent years. India is a major exporter of clothing, shrimp, and jewelry to the U.S., and the export losses have led to an expansion of the trade deficit to $32.15 billion. Both sides are negotiating a new trade agreement, and Trump stated that India has agreed to stop purchasing Russian oil"
datetime: "2025-10-16T16:05:50.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/261482810.md)
  - [en](https://longbridge.com/en/news/261482810.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/261482810.md)
---

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# Trump imposes 50% tariff, India's exports to the US plummet

India is a major exporter of clothing, shrimp, and jewelry to the United States.

Data shows that since U.S. President Trump imposed a 50% tariff on Indian goods starting August 27, India's exports to the U.S. plummeted in September, dropping 20% year-on-year, with a cumulative decline of nearly 40% over the past four months, marking the largest drop in recent years.

This round of high tariffs includes a 25% punitive additional tax, justified by New Delhi's refusal to stop importing crude oil from Russia. Srivastava, co-founder of the Global Trade Research Initiative (GTRI) based in Delhi, stated, "Since the tariff increase, the U.S. has become the most severely impacted export market for India."

Currently, India and the U.S. are negotiating a new trade agreement, with both sides hoping to reach a consensus next month. GTRI's analysis indicates that labor-intensive industries have been hit hardest, including textiles, gemstones and jewelry, engineering products, and chemical products, with the most significant export losses.

India's exports to the U.S. have declined for four consecutive months, falling from $8.8 billion in May to $5.5 billion in September, a decrease of 37.5%. The sharp drop in exports has led to an expansion of India's trade deficit to $32.15 billion, the highest in nearly 13 months. Some of the decline has been offset by increased trade with the UAE and China.

India-U.S. trade negotiations resumed last month after being stalled for a long time over agricultural and dairy market access issues. Trump stated on Wednesday that Indian Prime Minister Modi has agreed to stop purchasing Russian oil to align with U.S. economic pressure on the Kremlin. However, an Indian Ministry of External Affairs spokesperson responded that both sides are still engaged in "ongoing consultations" regarding energy cooperation.

In 2024, the U.S. was India's largest trading partner, with bilateral trade reaching $190 billion. Trump and Modi had previously set a goal to increase bilateral trade to $500 billion in the coming years

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