New Delhi: Electronics, energy products and medicines—together accounting for roughly 30 percent of India’s total basket of exports to the US—are all exempted from US President Donald Trump’s tariffs. However, textiles, gems and jewellery, and seafood will be most impacted.
In 2024-2025, India exported $86.5 billion worth of goods to the US, according to data from the Ministry of Commerce and Industry. These accounted for a total of 19.77 percent of India’s total exports of goods in the 2024-2025 financial year, which stood at $437.5 billion.
Trump had announced last week that Indian goods exported to the US will face tariffs of 25 percent, starting 7 August. On 6 August, the US president imposed a further 25 percent on Indian goods over New Delhi’s purchase of Russian oil. The 6 August tariff rate is set to kick in 21 days later, which will see certain Indian goods facing 50 percent tariffs.
Trump has taken exception to India’s trade surplus with the US. India’s imports of goods from the US stood at $45.6 billion in the last financial year. The American president has asserted that India has some of the highest protective tariffs in the world.
India’s largest exports to the US in 2024-2025 were smartphones (HS code: 8517.13.00) worth $10.56 billion, $4.89 billion worth of diamonds (HS code: 7102.39.10), and $4 billion worth of other retail medicines (HS code: 3004.90.99). These three goods accounted for roughly 19.4 percent of India’s overall exports of goods to the country.
Smartphones and medicines are both currently exempted from the imposition of additional tariffs by Trump’s executive orders, meaning two out of the three largest exports to the US are outside the scope of the duties.
Pharmaceutical exports are exempted from the scope of the tariffs due to the Section 232 National Security Investigation being carried out by the US Department of Commerce. Considering the four-digit HS code rather than the eight-digit code for pharmaceuticals (HS code: 3004), India exported roughly $9.49 billion worth of such products that includes all medicaments.
Smartphones and other electronic goods were excluded from the Trump tariffs effective 11 April, 2025, according to a notice published by the US Customs and Border Protection.
Apart from these, other areas exempted from the new tariffs include “copper…semiconductors, lumber articles, certain critical minerals, and energy and energy products”, according to executive order 14257 unveiled by Trump on 2 April, 2025.
Trump’s latest executive order announced Wednesday, which would raise tariffs on India to 50 percent (an additional 25 percent due to New Delhi’s continued purchase of Russian oil) will come into effect 21 days from 6 August (the date the order was signed), and is set to continue the current exemptions granted by US administration. The reciprocal tariffs and penalties take aim solely at exports of goods, not services.
New Delhi and Washington D.C. previously engaged in intense negotiations for a mini-trade deal to reduce additional tariffs, and also a larger bilateral trade agreement, which was announced by Prime Minister Narendra Modi and Trump during the former’s visit to the US in February 2025.
However, negotiations for the mini-deal have stalled over the issue of granting greater access to American companies in India’s agricultural and dairy sectors. India was willing to make certain concessions in these areas, but those have seemingly fallen short of US’ expectations.
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Other exempted articles
Apart from pharmaceuticals and electronics, other articles exempted from tariffs are highlighted in Annex II of the executive order, while “all articles that may become subject to duties pursuant to future actions under section 232 of the Trade Expansion Act of 1962” are also excluded.
Trump has taken exception to India’s purchase and refining of Russian oil, and exporting these petroleum products to the West. India’s fourth largest export to the US in 2024-2025 was other petroleum products (HS code: 2710.12.90), which stood at $3.1 billion. A broader view of the basket of petroleum products under HS code 2710 shows that India exported a total $4.08 billion worth of such products to the country in the last financial year.
These exports continue without tariffs due to the exemptions carved out for energy products in Trump’s new tariff regime.
Semiconductors (HS code: 8541) are largely excluded from the tariffs at present. In the last financial year, India exported roughly $1.14 billion worth of semiconductor products to the US. However, Trump Wednesday indicated the imposition of a potential 100 percent tariff on semiconductor products. But there has been little clarity from the administration on this.
Goods most impacted by US tariffs
Electronics, pharmaceuticals and even refined petroleum products account for around $24.3 billion of India’s total goods exported to the US in the last financial year. However, Indian exports of gems and jewellery, textiles and apparels, and shrimps will be impacted.
Chapter 71 of the Harmonised System (HS) codes covers most goods under gems and jewellery. For India, the US is the largest export market for all kinds of gems and jewellery, including precious stones, pearls, diamonds and imitation jewellery. In 2024-2025, the total exports of goods to the US under the umbrella HS code 71 stood at $9.97 billion, while global exports were worth $29.95 billion.
The US accounts for roughly 33 percent of India’s total global exports of gems and jewellery. The 25 percent tariffs kicking in Thursday will impact this sector in particular, and the additional penalty, which should come into effect in the last week of August.
The US is also India’s largest market for crustacean fish (shrimps, crabs, prawns etc). In 2024-2025, Indian exporters exported roughly $1.95 billion worth of crustaceans to the country, which accounts for 42.1 percent of New Delhi’s total global exports, which stood at $4.63 billion in 2024-2025.
The other sector that will be impacted by the tariffs is textiles and apparel. In 2024-2025, India exported $513 million worth of cotton t-shirts to the US (HS code: 6109.10.00), and $736 million worth of toilet linen (HS code: 6302.60.90), which are few examples of goods that will face higher tariffs entering the US, starting Thursday.
Roughly $2.1 billion worth of textile goods, including women’s jackets, bibs, dresses, skirts and suits (HS code: 6204), and other furnishing articles (HS code: 6304) will face the brunt of the newly imposed tariffs.
(Edited by Mannat Chugh)
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