India’s exports to US rise as tariff tensions ease

India’s goods exports to the United States increased in October for the first time in five months, rising 14.5 per cent from September, even as Donald Trump’s high tariffs on Indian imports remained in place.

Exports to India’s largest foreign market had declined sharply in September after 50 per cent US tariffs on India – including a 25 per cent penalty linked to Russian oil purchases – took effect on 27 August.

The latest improvement comes as Indian state-run oil companies agreed to increase annual liquified petroleum gas (LPG) imports from the US, and as Trump exempted several farm products from reciprocal tariffs in a move expected to support Indian exporters, BBC reported.

Trade negotiations between the two countries are ongoing, with an Indian official saying that significant parts of a potential deal were nearing completion.

The rise in shipments to the US comes despite India’s overall goods exports falling 11.8 per cent year-on-year in October, with 15 of its top 20 export destinations recording declines, The Hindu reported.

Trade tensions between the two countries appear to be easing after a period of uncertainty.

On Monday, India announced its first major agreement to source around 10 per cent of its annual LPG requirement from American suppliers. Petroleum Minister Hardeep Singh Puri called the move a “historic development” and said the world’s largest and fastest-growing LPG market had now opened up to the US.

The Trump administration has been urging India to increase purchases of American petroleum and reduce reliance on Russian crude. India became one of Russia’s largest buyers after Western sanctions on Moscow following the start of the Ukraine war in 2022.

India imported $52.7bn worth of Russian crude last year, accounting for 37 per cent of its total oil bill. Trump has repeatedly said that India agreed to reduce these imports, though Delhi has not confirmed this.