The United States’ heavy reliance on key Indian imports, including pharmaceuticals, seafood, and electronics, may complicate former President Donald Trump’s proposed tariff measures. As the US prepares to introduce reciprocal tariffs on April 2, discussions between Indian and US trade officials continue in New Delhi to mitigate the impact of these duties.
The United States’ growing reliance on key Indian imports, such as pharmaceuticals, seafood, and electronics, may pose challenges to former President Donald Trump’s proposed tariff measures, a Moneycontrol analysis has revealed. India supplies at least 30 percent of total US imports in certain categories, making punitive tariffs a complex decision for US policymakers.
In 2024, India accounted for 40 percent of US imports of pharmaceuticals containing penicillin and streptomycin, as well as food products like shrimps and prawns. Seafood exports alone were valued at approximately $1.9 billion. Additionally, India’s total exports to the US, including oil, increased by 7 percent to $80.8 billion in 2024, up from $75 billion in 2023.
With the US preparing to introduce a 25 percent tariff on all imported cars, auto components, and light commercial vehicles on April 3, concerns remain about potential retaliatory duties on Indian exports. The US is also expected to unveil reciprocal tariffs on April 2, though their impact on Indian goods remains unclear.
As the deadline approaches, trade representatives from both countries are engaged in negotiations in New Delhi to finalize the first phase of a bilateral trade agreement. India is pushing for exceptions from the impending tit-for-tat tariff regime. Talks between Indian officials and the visiting US trade delegation are expected to continue until March 29.
Changing Nature of India’s Exports
India’s export trends to the US have shifted significantly in recent years. Pharmaceuticals and smartphones were the top exports in 2024, accounting for nearly 18 percent of total shipments, while diamonds and jewelry made up 12 percent.
Notably, smartphones, tiles, and turbojets emerged as the fastest-growing export categories, recording nearly 50 percent growth compared to 2023. With Apple expanding its manufacturing operations in India, any new tariffs on electronics could lead to higher costs for American consumers.
Former President Trump has previously criticized India’s trade policies, often referring to the country as a “tariff king.” However, given India’s strategic position in US supply chains, imposing retaliatory tariffs could create new economic challenges for the US market.
As negotiations continue, both nations are expected to navigate a complex trade landscape, balancing economic interests with geopolitical considerations.
