India's exports to the United States experienced a noticeable decline in December 2025. Official data reveals a drop of 1.83 percent, bringing the total export value down to Rs 62 crore. This decrease highlights a challenging period for trade between the two economic partners.
New Tariff Policy Affects Trade Flow
The United States government implemented a significant new tariff policy earlier in the year. Starting from August 27, 2025, a sweeping 50 percent tariff was imposed on Indian goods entering American markets. This substantial increase in import duties has directly impacted the flow of Indian products to the US.
Ongoing Negotiations for a Trade Agreement
In response to these trade tensions, officials from both countries have initiated negotiations. They are working towards a comprehensive bilateral trade agreement. The primary goal of these discussions is to boost two-way commerce and establish more favorable terms for exporters and importers on both sides.
Trade analysts are closely monitoring the situation. Many believe the December export figures reflect the initial effects of the tariff implementation. Businesses involved in cross-border trade are adjusting their strategies to navigate the new economic landscape.
The negotiations represent a critical effort to stabilize and potentially expand the trade relationship. Success in these talks could lead to reduced barriers and increased market access for Indian exporters in the coming months.
