India’s Exports to US Slip in December: India’s merchandise exports to the United States declined 1.83 per cent year-on-year to USD 6.88 billion in December 2025, largely due to higher tariffs imposed by Washington, according to data released by the Commerce Ministry.
Exports to the US stood at Exports to the US stood at USD 7.01 billion in December 2024, indicating continued pressure on India’s outbound shipments to its largest trading partner.
The December contraction follows a weak trend in September and October, when exports to the US also fell. However, shipments had shown a sharp rebound of 22.61 per cent in November, suggesting volatility rather than a sustained recovery.
Tariff Pressure Hits Key Sectors
Trade experts say elevated US tariffs have particularly impacted labour-intensive sectors such as:
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Engineering goods
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Textiles and apparel
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Gems and jewellery
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Leather products
These sectors are sensitive to price competitiveness, and higher duties have made Indian exports less attractive compared to suppliers from Latin America and Southeast Asia.
Why the US Market Matters for India
The United States remains India’s single largest export destination, accounting for around 18 per cent of total merchandise exports. Any slowdown in shipments to the US has a direct bearing on:
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India’s overall export growth
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Manufacturing output
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Employment in export-driven industries
The December dip comes at a time when India is attempting to push exports amid weak global demand, geopolitical uncertainty, and tightening trade policies in developed markets.
Backgrounder: India–US Trade Dynamics
India–US bilateral trade has expanded steadily over the past decade, crossing USD 190 billion in total trade value. However, the relationship has also faced periodic friction over:
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Tariffs and market access
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Standards and regulatory barriers
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Withdrawal of preferential trade benefits in earlier years
While negotiations on a broader trade agreement continue intermittently, exporters say the absence of tariff relief and clarity on trade rules has limited long-term planning.
Outlook
Commerce Ministry officials indicate that export performance in the coming months will depend on:
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Global demand conditions
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Movement in freight and input costs
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Progress in trade engagements with the US
Analysts expect exports to remain uneven in the short term, with recovery hinging on policy support and easing of trade barriers in key markets.