The reworking of tariffs by the US has resulted in a realignment in the list of suppliers of key products to the American market with India placed among those benefiting at the expense of China, an official said Monday.
The most visible gains have been noticed in electronics. In May this year, India’s share in US’ electronics imports increased to 7.2% from 3.5% in the year ago month while China’s share went down to 11% from 22%.
Within electronics the growth for India was led by smartphones and solar modules. The share of the US in electronic exports from India in April-June of the current financial year stood at 60.17%. Overall electronics exports in April-June were up 47% to $ 12.41 billion.
Textile, Agri exports ride tariff shifts
China’s share in textiles exports to the US fell from 27% to 14%, at a time when India’s share in the US textiles’ import market grew from 9% to 12% and Vietnam’s share grew from 14% to 18%.
Similarly China’s share in agri exports to the US fell from 3.5% to 1.5%, and despite no overlap in export commodities, India’s share has grown from 1.7% to 2.2%. Indonesia and Vietnam ended up grabbing a portion of China’s space in agriculture exports to the US.
In the 1st quarter of 2025-26, India, Mexico and the European Union (EU) have witnessed a positive growth in exports to the US while China has seen the sharpest fall in exports to the US among G20 countries (around 5%), followed by Canada and many other countries, the officials said.
China’s exports to the US have suffered as it has faced the highest tariffs among major exporters to America. Even after the agreement between US and China the tariffs on China stay at 55%.
Autos, steel, chemicals hit
The pain for India has been seen in the auto and auto component sector, and steel and aluminium that have been singled out for high sector specific tariffs. Because of additional 25% tariffs on auto sector exports of tractors and motorcycles to the US have fallen.
As steel and aluminum have 50% additional duties the domestic steel prices in the US are 40% more than international prices. The high prices and tariff uncertainty has resulted in fall in order inflow, the official added. Another sector that has suffered due to tariff uncertainty is chemicals. India’s share of US import of chemicals has come down to 3.5% from 4.4% between May 2025 and May 2024.
As pharma tariffs have been left untouched, India is maintaining its share in the US market. India maintains 40% share of the US generic drugs imports. US President Doland Trump has threatened 200% duties on pharma but India is expected to maintain its share as its products are 30% to 80% cheaper than the competition.
Moreover, it is still not clear whether the pharma tariffs will also apply to generics, the official said.