GTRI reports 16 percent fall in August exports to U.S. due to high tariffs

Noor Mohmmed

18/Sep/2025

India’s August shipments to the U.S. fell to $6.7 billion, down 16.3 percent from July due to rising tariffs.
U.S. duties doubled to 50 percent by the end of August, impacting Indian exports across key sectors.
GTRI highlights that high tariffs are affecting trade volumes, signaling challenges for exporters and policymakers.

India’s exports to the United States experienced a significant decline in August 2025, as reported by the Global Trade Research Initiative (GTRI). According to the trade analysis, shipments to the U.S. fell to $6.7 billion, marking a 16.3 percent decrease from July 2025. The steep fall comes amid doubling of U.S. tariffs to 50 percent, which took effect by the end of August, placing substantial pressure on Indian exporters.

The GTRI report highlights that sectors such as textiles, chemicals, and industrial machinery were particularly impacted by the higher duties, leading to slower order fulfillment and delayed shipments. Businesses reliant on U.S. markets have expressed concern over the sudden increase in tariffs, citing reduced competitiveness and strained profit margins.

Economists note that the hike in U.S. duties is likely to affect India’s overall trade balance, as the country seeks to maintain a steady export momentum. The report emphasizes that exporters may need to diversify into alternative markets and seek tariff mitigation strategies to maintain growth.

Industry representatives have called for enhanced diplomatic engagement and trade negotiations to address the escalating tariff barriers. The Ministry of Commerce is reportedly monitoring the situation closely and exploring measures to support exporters facing higher import duties in the U.S.

The GTRI also pointed out that the decline in exports could have a cascading impact on manufacturing and employment, especially in sectors heavily reliant on U.S. demand. Analysts suggest that long-term strategies, including value addition, cost reduction, and market diversification, will be crucial for sustaining export growth in a challenging global trade environment.

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GTRI reports 16 percent fall in August exports to U.S. due to high tariffs

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