The Trump administration's tariffs on Indian goods have had a devastating impact on the country's exports to the United States. Since the tariffs were imposed, India's exports to the US have plummeted by 20% in September and nearly 40% in the last four months. This is particularly concerning for labor-intensive sectors such as textiles, gems and jewelry, engineering goods, and chemicals, which have suffered the heaviest losses. The trade deficit between India and the US widened to a 13-month high of $32.15 billion in September, further exacerbating the economic strain. However, some of the reduction in exports to the US was mitigated by improved trade with countries like the UAE and China. Despite the ongoing negotiations for a trade deal between the two countries, major sticking points over trade still remain, including access to agriculture and dairy. For years, the US has pushed for greater access to India's farm sector, but India has fiercely protected it, citing food security, livelihoods, and the interests of millions of small farmers. The Trump administration's tariffs have not only affected India's exports but also put economic pressure on the Kremlin as part of efforts to end the war in Ukraine. While negotiations are ongoing, the future of India's trade relations with the US remains uncertain.
