Treasury & Capital Markets /
Viewpoint
India hit hard by US tariffs needs new export model
Donald Trump’s punishing tariffs have laid bare the fragility of India’s export model, which depends on a handful of markets and a narrow band of relatively low-value-added products. Only by embracing a new model – which emphasizes diversification, regional cooperation and value addition – can India build long-term resilience
Shashi Tharoor
3 Dec 2025
US President Donald Trump’s doubling of tariffs on a wide range of Indian goods, from a steep 25% to a catastrophic 50%, is reshaping India’s export economy. Half of what India sells to the United States – its largest trading partner – is now prohibitively expensive, and ordinary Indians are suffering as a result.
