Despite US President Donald Trump&rsquo;s latest move to impose a 50% tariff on Indian imports, over $30 billion worth of key Indian exports, including pharmaceuticals, smartphones, semiconductors, and energy, remain exempt for now.
These items, listed under an exemption clause, comprise a significant share of India&rsquo;s outbound trade to the US. In FY25, India exported $10.5 billion worth of pharmaceutical products and $14.6 billion in electronics (mostly smartphones), accounting for nearly 29% of total exports to the US.
Petroleum exports valued at $4.09 billion are also shielded, as energy products continue to enjoy exemption status. India&rsquo;s overall exports to the US stood at $86.51 billion in FY25.
The new tariffs are set to be enforced in 21 days, but for now, these key sectors remain unaffected, allowing exporters to front-load shipments and maintain strong trade momentum.
Between January and June 2025, India&rsquo;s export share to the US rose from 17&ndash;18% to over 20%, largely due to zero duties on these exempted goods. Commerce Ministry data shows that US-bound exports surged to $25.52 billion in Q1 FY26, a 23% rise year-on-year.
However, the relief may be short-lived. Trump has hinted at future 200% tariffs on foreign-made drugs, and industry insiders warn smartphone exemptions may be revisited.
Despite overall export growth of under 2% in Q1 FY26, shipments to the US remain a bright spot, now making up 23% of India&rsquo;s total exports.
[Except for the headline, this article has not been edited by the Benefit News editorial team and is published directly from the IANS news feed.]
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$30B Indian Exports Safe from Trump Tariff

Smartphones, drugs, and energy exports remain exempt from Trump's new 50% import tariff

$30B Indian Exports Safe from Trump Tariff

Smartphones, drugs, and energy exports remain exempt from Trump's new 50% import tariff

August 7, 2025 | 14:41 IST