How Trump-Era Tariffs Reshaped the Game for Indian Exporters

How Trump-Era Tariffs Reshaped the Game for Indian Exporters When former U.S. President Donald Trump imposed a series of aggressive tariffs during his tenure, the global trade landscape shifted dramatically — and Indian exporters were not spared. Aimed largely at rebalancing trade deficits and protecting domestic manufacturing, Trump’s tariff policies had ripple effects far beyond American shores, with Indian exporters facing both direct and indirect consequences. The Direct Hits: Steel, Aluminum & More In 2018, the Trump administration slapped a 25% tariff on steel and a 10% tariff on aluminum imports from several countries, including India. For Indian exporters in these sectors, it was a direct blow. Companies suddenly found their goods becoming less competitive in the U.S. market — either they had to absorb the costs or risk losing customers to local or tariff-exempt suppliers. The result? A drop in shipments, thinning profit margins, and a pressing need to diversify into alternative markets like Europe, Southeast Asia, or Africa. The GSP Withdrawal: Salt in the Wound Adding fuel to the fire, the U.S. removed India from its Generalized System of Preferences (GSP) list in 2019. This preferential trade program had allowed thousands of Indian goods to enter the U.S. duty-free — including textiles, engineering goods, and leather products. Its removal affected over $5 billion worth of Indian exports. Small and medium enterprises (SMEs), already grappling with rising input costs and global uncertainty, felt the pinch the most. Many struggled to stay competitive, especially in price-sensitive segments. Leather and Handicrafts: A Silent Suffering India’s leather and handicraft industry — including products like shoes, belts, and bags — saw subdued demand from U.S. buyers. With added tariffs and increased shipping costs, American retailers began sourcing from closer alternatives or pushing for deeper discounts from Indian exporters. Brands that had long relied on India for quality and affordability had to renegotiate terms, sometimes walking away from long-standing relationships. Opportunities in the Chaos? While the tariffs were undoubtedly challenging, they also sparked a wave of innovation and resilience. Indian exporters started: Exploring new markets like Latin America, the Middle East, and Eastern Europe. Investing in product upgrades and compliance to tap into high-value segments. Negotiating better bilateral trade deals through government support. Moreover, with rising tensions between the U.S. and China, some American buyers began seeking China-plus-one strategies — and India benefited. Exporters who could scale quickly, offer reliability, and navigate global logistics emerged stronger. The Takeaway Trump's tariffs were a wake-up call for Indian exporters. They underscored the volatility of international trade and the dangers of overdependence on a single market. But they also prompted a deeper introspection — and a push toward diversification, quality improvement, and market resilience. In a world where trade policies can shift overnight, adaptability remains key. And Indian exporters, with their blend of tradition and entrepreneurship, are proving they can rise to the challenge.