{"id":18043,"date":"2026-07-29T05:13:42","date_gmt":"2026-07-29T11:43:42","guid":{"rendered":"https:\/\/shoonya.com\/blog\/?p=18043"},"modified":"2026-07-29T05:17:23","modified_gmt":"2026-07-29T11:47:23","slug":"us-tariff-india","status":"publish","type":"post","link":"https:\/\/shoonya.com\/blog\/us-tariff-india\/","title":{"rendered":"US Tariff May Give India an Edge, but a Quarter of Exports to America Remain Under Pressure"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\"><p class=\"ez-toc-title\" style=\"cursor:inherit\"><\/p>\n<\/div><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/shoonya.com\/blog\/us-tariff-india\/#How_Indias_US_Exports_Split_Across_Tariff_Categories\" >How India&#8217;s US Exports Split Across Tariff Categories<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/shoonya.com\/blog\/us-tariff-india\/#Where_the_Losses_Are_Concentrated\" >Where the Losses Are Concentrated<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/shoonya.com\/blog\/us-tariff-india\/#Which_Sectors_Gained_From_the_Tariff_Advantage\" >Which Sectors Gained From the Tariff Advantage<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/shoonya.com\/blog\/us-tariff-india\/#Final_Outlook\" >Final Outlook<\/a><\/li><\/ul><\/nav><\/div>\n<nav style=\"--separator: &quot;\/&quot;\" class=\"wp-block-breadcrumbs\" aria-label=\"Breadcrumbs\"><ol><li><a href=\"https:\/\/shoonya.com\/blog\/\">Home<\/a><\/li><li><a href=\"https:\/\/shoonya.com\/blog\/latest-news\/\">News<\/a><\/li><li><span aria-current=\"page\">US Tariff May Give India an Edge, but a Quarter of Exports to America Remain Under Pressure<\/span><\/li><\/ol><\/nav>\n\n\n<meta charset=\"UTF-8\">\n<meta name=\"viewport\" content=\"width=device-width, initial-scale=1.0\">\n \n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Bricolage+Grotesque:opsz,wght@12..96,400;12..96,600;12..96,700;12..96,800&amp;family=Figtree:ital,wght@0,300;0,400;0,500;0,600;1,400&amp;display=swap\" rel=\"stylesheet\">\n<style>\n  :root {\n    --forest:   #082F24;\n    --mustard:  #EFA145;\n    --reddish:  #AA573D;\n    --white:    #FFFFFF;\n    --fresh:    #EEFFF2;\n    --bg:       #FAFAF8;\n    --surface:  #FFFFFF;\n    --text:     #1C2B24;\n    --muted:    #5A6B62;\n    --border:   #E2EDE6;\n    --green:    #1A6B40;\n  }\n  .blog-wrap, .blog-wrap * { box-sizing: border-box; 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background: #F4F4F0; border-radius: 8px; border: 1px solid #E4E4DC; margin: 16px 0; }\n\n  @media (max-width: 640px) {\n    .blog-wrap table { font-size: 14.5px; }\n  }\n<\/style>\n\n\n\n<div class=\"blog-wrap\">\n  <div class=\"prose\">\n\n    <p class=\"news-lead\">India may enjoy a competitive advantage over several rival exporting nations due to the United States&#8217; 10% Section 301 tariff, but nearly a quarter of its shipments to the US continue to face stress.<\/p>\n\n    <p>India&#8217;s exports to the US fell 16% to $26.2 billion during March-May 2026 from $31.31 billion in the corresponding period a year ago. The decline came despite a sharp improvement in several tariff-covered product categories, suggesting that gains have been concentrated in select sectors while a significant portion of shipments continues to struggle.<\/p>\n\n   \n\n    <h2><span class=\"ez-toc-section\" id=\"How_Indias_US_Exports_Split_Across_Tariff_Categories\"><\/span>How India&#8217;s US Exports Split Across Tariff Categories<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Exports that registered growth during the three-month period rose to $15.5 billion from $10.83 billion.<\/p>\n\n    <div class=\"table-wrap\">\n      <table>\n        <thead>\n          <tr><th>Category<\/th><th>March-May 2025<\/th><th>March-May 2026<\/th><\/tr>\n        <\/thead>\n        <tbody>\n          <tr><td>Total exports to the US<\/td><td>$31.31 billion<\/td><td>$26.2 billion<\/td><\/tr>\n          <tr><td>Exports registering growth<\/td><td>$10.83 billion<\/td><td>$15.5 billion<\/td><\/tr>\n          <tr><td>Growth under Section 232 and exempt categories<\/td><td>$8.63 billion<\/td><td>$12.35 billion<\/td><\/tr>\n          <tr><td>Growth under reciprocal tariffs<\/td><td>$2.19 billion<\/td><td>$3.15 billion<\/td><\/tr>\n          <tr><td>Decline under reciprocal tariffs<\/td><td>$11.79 billion<\/td><td>$6.28 billion<\/td><\/tr>\n        <\/tbody>\n      <\/table>\n    <\/div>\n\n    <p>Of this, shipments exempt from reciprocal tariffs and covered under Section 232 increased to $12.35 billion from $8.63 billion. Exports covered by the reciprocal tariff also managed to grow, rising to $3.15 billion from $2.19 billion, indicating that Indian exporters expanded shipments in several product lines despite the additional 10% duty.<\/p>\n\n    <h2><span class=\"ez-toc-section\" id=\"Where_the_Losses_Are_Concentrated\"><\/span>Where the Losses Are Concentrated<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Products facing tariff-related pressure accounted for almost 24% of India&#8217;s exports to the US during the period. Exports in these categories fell to $6.28 billion from $11.79 billion a year earlier, a decline of nearly 47%.<\/p>\n    <p>Three categories stand out for the steepness of their fall:<\/p>\n\n    <div class=\"callout callout-warning\">\n      <span class=\"callout-icon\">\ud83d\udcc9<\/span>\n      <div class=\"callout-body\">\n        <div class=\"callout-label\">Steepest Declines<\/div>\n        <ul>\n          <li><strong>Diamond trade collapsed:<\/strong> India exported $92.19 million worth of diamonds to the US in March-May 2026, compared with $1.26 billion in the same period last year.<\/li>\n          <li><strong>Jewellery exports<\/strong> declined 70% year-on-year.<\/li>\n          <li><strong>Shrimp trade<\/strong> fell 33%.<\/li>\n        <\/ul>\n      <\/div>\n    <\/div>\n\n    <h2><span class=\"ez-toc-section\" id=\"Which_Sectors_Gained_From_the_Tariff_Advantage\"><\/span>Which Sectors Gained From the Tariff Advantage<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>Among the biggest gainers were niche engineering, textile, and electronics products. Several categories recorded multi-fold increases from a year ago, albeit from relatively small bases:<\/p>\n    <ul>\n      <li><strong>Optical fibres<\/strong> surged from $98,194 to $8.8 million.<\/li>\n      <li><strong>Seamless steel casing pipes<\/strong> used in oil and gas drilling jumped from $26,400 to $2.69 million.<\/li>\n      <li>Domestic coffee and tea makers, footwear components, welding machinery parts, and electrical equipment also posted sharp increases.<\/li>\n    <\/ul>\n\n    <h2><span class=\"ez-toc-section\" id=\"Final_Outlook\"><\/span>Final Outlook<span class=\"ez-toc-section-end\"><\/span><\/h2>\n    <p>While the uniform 10% rate may improve India&#8217;s relative competitiveness against countries facing steeper duties, the benefits have not spread across all categories. The gains visible in engineering and electronics stand against steep declines in high-value segments such as diamonds and jewellery, which were among India&#8217;s largest export earners to the US.<\/p>\n\n    <hr class=\"divider\">\n\n    <p class=\"source-line\">Source: MoneyControl<\/p>\n\n    <div class=\"disclaimer\">\n      <strong>Disclaimer:<\/strong> This article is for informational purposes only and is based on publicly available news reports. It should not be considered investment or trade policy advice. Read all related documents carefully before making investment decisions.\n    <\/div>\n\n  <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>India may enjoy a competitive advantage over several rival exporting nations due to the United States&#8217; 10% Section 301 tariff, but nearly a quarter of its shipments to the US continue to face stress. India&#8217;s exports to the US fell 16% to $26.2 billion during March-May 2026 from $31.31 billion in the corresponding period a &hellip; <a href=\"https:\/\/shoonya.com\/blog\/us-tariff-india\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;US Tariff May Give India an Edge, but a Quarter of Exports to America Remain Under Pressure&#8221;<\/span><\/a><\/p>\n","protected":false},"author":17,"featured_media":18044,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_members_access_role":[],"_members_access_error":""},"categories":[1082],"tags":[9305,10334,9699,8142],"class_list":["post-18043","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-india-us-trade-deal","tag-india-us-trade","tag-reciprocal-tariffs","tag-us-tariff-on-india"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>US Tariff Helps India, but 25% of US Exports Face Pressure<\/title>\n<meta name=\"description\" content=\"India&#039;s exports to the US fell 16% to $26.2 billion in March-May 2026. 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