New Delhi, Sept. 22 -- India's merchandise exports to the US, its largest trading partner, fell by a massive 22.2% from $8.8 billion to $6.9 billion between May and August 2025, according to a new report by the Global Trade Research Initiative (GTRI). US tariffs on Indian goods rose from 10% in early August to 25% from 7 August, and finally to a record 50% by the end of the month.

The GTRI analysis showed that the impact of tariffs has been uneven across sectors. Surprisingly, tariff-exempt exports, which accounted for 28.5% of India's August shipments, saw the biggest contraction, declining 41.9% from $3.37 billion in May to $1.96 billion in August.

Smartphone exports - India's largest category to the US - plummeted 58% to just $965 mi...