Trump tariffs strike India:US exports crash 37.5% in last 4 months; traders refuse to send clothes jewellery to America at elevated prices

After the US imposed 50% tariff on Indian goods, exports from India to America has become expensive. As a result, exports have seen a significant decline of 37.5% in the last four months. According to the Global Trade Research Initiative (GTRI) report, this is the biggest decline this year. India’s exports to America were $8.8 billion in May 2025, which fell to $5.5 billion by September 2025. This means, in just four months, India’s exports have decreased by more than $3.3 billion (approximately ₹28,000 crore). Exports fell most by 20% in September September was the first month when Indian goods faced a full 50% duty. In this month, exports saw the biggest monthly decline of 20.3%. Although this decline had started in June. There was a decrease of 5.7% in June, 3.6% in July, and 13.8% in August. Textiles and Gems Jewellery sector most affected According to the report, major industries like textiles, gems and jewelry, engineering goods and chemicals have been most affected. The significant reduction in shipments from these industries became the biggest reason for the export decline. Now answers to two important questions… Question 1: What is a tariff and why did Trump impose it on India? Answer: Tariff means import duty. When one country buys goods from another country, it imposes some tax on it, which is called tariff. Trump says that India charges very high tariffs on American goods, while America imposes low taxes on Indian goods. Trump feels this is unfair. Therefore, under his ‘reciprocal tariff’ policy meaning ‘tit for tat’ policy, he had announced imposing 25% tariff on India. Trump had also expressed displeasure over India’s purchase of oil and military equipment from Russia. For this reason, an additional 25% tariff was also imposed. That means, a total of 50% tariff has been imposed. Question 2: What is the status of trade deal between India and America? Answer: India and America have been working on a trade deal for a long time. The American team was supposed to come for the sixth round of talks on August 25, but it was later postponed. Agreement could not be reached on issues like the agriculture sector. After this, talks resumed in September. Indian officials are hoping to reach a major agreement by the end of this year.