India’s exports to the United States, its largest trading partner, are facing sharp disruption. A 25% country-specific tariff, combined with an additional unspecified penalty, threatens to undercut India’s competitive position. In contrast, regional rivals like Vietnam, Bangladesh, and Mexico continue to enjoy lower or zero tariffs.The new US tariff regime exempts only a few sectors, pharmaceuticals, energy products, critical minerals, and semiconductors. Outside these, nearly every major Indian export faces pressure. Exports to the US are projected to drop by nearly 30%, from $86.5 billion in 2024–25 to $60.6 billion in 2025–26.
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