Nearly 30% of Indian Exports to US to Attract Tariffs Above 15%

A recent analysis reveals that nearly 30% of Indian exports to the US—valued at around $19 billion—will now face tariffs of 15% or higher, raising fresh concerns for exporters and policymakers alike.

This shift follows the US government’s move to introduce a flat 10% import duty across all countries, replacing earlier reciprocal tariff structures. While previously only about 10% of Indian goods entering the US attracted tariffs over 10%, that share has now tripled.

Key Sectors Hit Hardest

The steepest hikes have landed on Indian steel and aluminium exports, both now subject to a 25% duty. Auto components are also facing similar 25% tariffs. Even traditionally exempt categories such as coffee, tea, and spices will now attract 10% duties, beginning this year. Seafood items like fish and shrimp are also seeing a 10% increase in tariff rates compared to 2024 levels.

The blow is sharper for some niche products. Tobacco items worth $30 million will now face tariffs nearing 100%, while exports of cane sugar and groundnuts are subject to duties above 50%.

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Tariff Impact Beyond Borders

The broader effect is a sharp rise in the weighted average US tariff on Indian goods—from 2.2% in 2023 to 12.2% this year—bringing it in line with India’s average tariff on American imports.

Interestingly, some of the burden may be felt by US consumers. India holds a dominant share in US imports of items like cucumbers, tractors, bed sheets, and capsicum. With these now subject to higher tariffs, short-term price pressures could ripple through American markets.

As trade tensions flare once again, exporters and officials will be watching closely for any signs of negotiations or easing of these newly imposed duties.

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