U.S. Tariffs and Indian Exports: An Empirical Assessment
Author(s): Dr Shipra Rai
Authors Affiliations:
Assistant Professor (Economics)
Government Degree College, Harakh, Barabanki (U P)
DOIs:10.2015/IJIRMF/202602013 | Paper ID: IJIRMF202602013The recent tariff policies introduced by U.S. President Donald Trump marked a new phase of economic protectionism. Rooted in the “Make America Great Again” doctrine, this trade agenda aimed to promote domestic manufacturing and reduce trade deficits through the imposition of high tariffs on imported goods. In the case of India, the U.S. imposed higher tariffs on Indian imports in response to India’s discounted purchases of Russian oil. This decision disrupted bilateral trade flows and weakened global supply chains. Since the United States accounts for nearly one-fifth of India’s total exports, these tariffs have significantly reduced India’s export competitiveness and led to job losses in key sectors such as textiles, gems and jewellery, chemicals, and auto components. These developments are expected to slow India’s GDP growth by approximately 0.3–0.5 percent (Moody’s, 2025). This paper examines the impact of the India–U.S. trade dispute on Indian exports and discusses the policy measures adopted by the Indian government to mitigate the adverse effects of tariffs. The study reviews existing literature on tariff policies and trade shocks, employs descriptive analysis of export data, and discusses relevant policy responses. It also analyzes the issue from a theoretical perspective. Data have been collected from secondary sources, including the Ministry of Commerce, the Reserve Bank of India (RBI), and the Economic Survey. The findings indicate that U.S. tariff impositions have negatively affected India’s export performance, with year-on-year declines observed across major export categories such as engineering goods, gems and jewellery, chemicals, readymade garments, and petroleum products. To counter these challenges, the Government of India has undertaken several measures, including simplification and restructuring of the Goods and Services Tax (GST), expansion of global trade partnerships, and banking sector reforms by the RBI. However, in the long run, India must focus on innovation, export diversification, and a balanced trade strategy to safeguard its economy against similar policy shocks in the future.
Dr Shipra Rai (2026); U.S. Tariffs and Indian Exports: An Empirical Assessment, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-12, Issue-2, Available on – https://www.ijirmf.com/
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