Tariffs to Affect More Than 50% Of Indian Exports To The U.S.

A leading body of Indian exporters said that the latest US tariffs will impact nearly 55% of the country’s outbound shipments to America and lead to exporters losing long-standing clients, Rajesh Roy reported for the Associated Press (AP).

In 2024, the US ran a $45.8 billion trade deficit in goods with India, meaning America imported more from India than it exported. (Photo: Federation of Indian Export Organizations Facebook)

“Absorbing this sudden cost escalation is simply not viable. Margins are already thin,” said S.C. Ralhan, president of the Federation of Indian Export Organizations.

He added that the tariffs effectively impose a cost burden, placing Indian exporters at a competitive disadvantage compared with countries that face lower import taxes.

In 2024, the US ran a $45.8 billion trade deficit in goods with India, meaning America imported more from India than it exported, according to the US Census Bureau. American consumers and businesses buy pharmaceutical drugs, precious stones, textiles, and apparel from India, among other goods.