Assessing the Impact of 2025 Reciprocal Tariffs on India–US Export Trade

Abstract. –

                  The 2025 imposition of reciprocal tariffs by the United States marks a significant shift in global trade dynamics, directly impacting India's export relationship with its key trading partner. Under Executive Order 14257, India now faces a 26% reciprocal tariff rate on a broad range of goods exported to the U.S., affecting over $80 billion in annual trade. This study evaluates the sector-wise impact of these tariffs, focusing on high-value and price-sensitive categories such as engineering goods, electronics, textiles, and gems & jewelry, which collectively represent more than 60% of India’s U.S.-bound exports. The paper examines India's strategic response, including tariff negotiations, market diversification, and domestic policy recalibration. Overall, this analysis provides a timely assessment of how reciprocal trade policy could reshape the structure, competitiveness, and sustainability of India’s export economy.