Even US President Donald Trump announced a new tariff of over 25 percent on imports from India, some major Indian exports such as smartphones, laptops and medicines have been excluded from the list for some time. It comes as a partial relief for Indian exporters. Items such as phones and medicines create a large part together, which is more than $ 25 billion of India’s total exports.

In 2024–25 in the financial year alone, India sent electronic goods of $ 14.6 billion to the US and pharmaceutical products worth $ 10.5 billion. This is about 30 percent of India’s overall exports for the country.

Trump has said that these items are currently subject to exemption from new duties, but the danger of more action is still tax. They have indicated on possible duties as 200 percent on foreign -made drugs, and there is still no guarantee that electronics are long exempt.

For now, exemption is a major reason that India’s exports to India have been strong in recent months. Since January 2025, the United States has been buying more than India, especially smartphones, which currently enjoy zero import duties in the US. From January to June 2025, the US calculated more than 20 percent of India’s total goods exports – more than the first average of 17–18 percent.

In fact, India’s shipment for the US formed approximately 23 percent of all exports during the April -Zoon quarter of FY 26, matching shares seen in the last quarter of the last financial year. This increase has also come when India’s total exports decreased by 2 percent in the first quarter of the current financial year, and in fact the FY25 exceeded 4 percent in the last quarter.

Trump’s decision to Tarif’s decision is seen as a response to what he claims is that India has unfair trade practices including high duties on American goods. The US is also reportedly uncomfortable with India’s close ties with Russia, especially in areas such as defense and energy. Trump has indicated that if India continues to make big purchases from Moscow, additional punishment may be on the table.

At the same time, Trump suggested that India’s growing role in the expanded BRICS group, which added five new countries in January 2024, also played a role in its judgment.

Despite friction, the two countries are still negotiating to finalize the bilateral trade agreement. Meanwhile, energy products such as petroleum worth more than $ 4 billion have also been spared from the latest tariffs last year.

According to government data, India’s exports rose by about 23 percent to $ 25.5 billion during the April-June 2025 period. The total trade between the two countries during the same time was $ 32.4 billion. For all of FY25, the business value was more than $ 86 billion.