India's US exports jump despite 50% tariffs as trade tensions ease

November 18, 2025

India's exports to the United States increased by 14. 5% in October 2024 compared to September, marking the first rise in five months despite Trump's substantial tariffs remaining active. This improvement occurred while India's broader goods exports declined 11.

Who is affected

Indian exporters (particularly in smartphones, pharmaceuticals, and agricultural products like tea, coffee, and spices)
Indian state-run oil companies
US petroleum product suppliers
Indian and American trade negotiators
Consumers in both India and the United States
Russia (facing potential reduction in oil sales to India)
India's top 20 trading markets (15 experiencing declined bilateral trade)

What action is being taken

Trade deal negotiations between India and the US are underway
Indian state-run oil firms are importing more annual LPG from the US (approximately 10% of India's annual needs)
Trump has exempted many farm goods from reciprocal tariffs
The 50% US tariffs on India (including 25% penalty for buying Russian oil) remain in place

Why it matters

This matters because it signals a potential thaw in US-India trade relations after months of tension caused by Trump's steep tariffs, which had caused Indian exports to the US to drop 28.4% between May and October, erasing over $2.5 billion in monthly export value. The developments are significant for India's economy as the US is its largest foreign market, and the country must navigate complex diplomatic relationships between satisfying US demands to reduce Russian oil dependency while maintaining ties with Moscow. The agricultural tariff exemptions and LPG deal could help stabilize India's export economy and reshape its energy import strategy.

What's next

Russian President Vladimir Putin is preparing to visit Delhi early next month to finalize several agreements and projects
The first phase of the US-India trade deal is reportedly "more or less near closure"
India is set to benefit from rolled-back reciprocal tariffs on agricultural products worth approximately $1 billion

Read full article from source: BBC