India’s exporters are currently subject to a base duty of 10% after the US administration temporarily suspended the 26% duty imposed on India. The data also showed that the trade deficit narrowed to a 4-month low of $18.78 billion in June as both imports and exports declined in the month. The trade deficit was $20.84 billion in June last year and $21.88 billion a month earlier. According to data released by the Commerce Department, merchandise exports to the US in June rose 23.5% year-on-year to $8.3 billion.

Exports to the US have crossed $8 billion since the beginning of 2025, compared to between $6 and $7 billion in 2024. India’s exports fell 0.06% year-on-year to $35.11 billion in June, mainly due to lower global crude oil prices and pressure on global supply chains due to the ongoing tariff war. Exports in June were not only at a 7-month low, but also 9.2% lower than a month earlier. Imports fell 3.7% to $53.92 billion in June. This was due to a decline in imports of petroleum products, gold, iron and steel.