High US tariffs weigh on India’s exports, shipments fall to USD 6.88 billion in December

India’s merchandise exports to the United States declined 1.83 per cent to USD 6.88 billion in December 2025, weighed down by higher tariffs imposed by Washington, according to Commerce Ministry data.

Exports to the US had also contracted in September and October last year, though they rose sharply by 22.61 per cent in November. In December 2024, India’s exports to the US stood at USD 7.01 billion.

Imports from the US, however, increased 7.57 per cent to USD 4.03 billion in December 2025, the data showed.

During the April–December period of the current financial year, India’s exports to the US grew 9.75 per cent to USD 65.87 billion, while imports rose 12.85 per cent to USD 39.43 billion.

The US has imposed a sweeping 50 per cent tariff on Indian goods entering American markets from August 27. The two countries are currently negotiating a bilateral trade agreement aimed at boosting two-way commerce.

Commenting on the data, Commerce Secretary Rajesh Agrawal said exports had continued to register positive growth despite the challenges.

“We have been holding well. We are in positive territory… Going forward, we hope that we will be in positive territory,” he told reporters here.

Agrawal also said India continued to purchase oil from its traditional suppliers, including the US.

“We are buying oil from the US also… our growth in purchases from the US rose by 40–50 per cent in nine months… that’s why imports from the US were also robust,” he added.

During the month under review, India’s exports to the UAE, Germany, Hong Kong, Spain, Malaysia and Vietnam recorded positive growth.

However, shipments to the Netherlands, the UK, Bangladesh, Singapore, Saudi Arabia, Italy, Australia, Nepal, Brazil, South Africa and France registered negative growth.

On the imports front, inbound shipments in December declined from countries such as Russia, Switzerland, Indonesia, Thailand and Qatar.

Imports, however, rose from the UAE, Saudi Arabia, Iraq, Singapore and Japan.