India-US air exports drop after 50% tariffs

AIR EXPORTS TO US PLUNGE BY 12% IN THE FIRST WEEK

- BY JUSTIN VARGHESE Your Money Editor

When the US raised tariffs on Indian goods to 50 per cent in late August, exporters rushed to beat the deadline.

Cargo planes filled up, shipments soared, and India-to-US volumes spiked by 28 per cent in a single week.

Then, almost overnight, the flow dried up.

According to WorldACD Market Data, air exports from India to the US plunged by 12 per cent in the first week after the new duty took effect, and fell another 14 per cent in early September. The sharp reversal highlights how quickly trade barriers can disrupt supply chains and shift market patterns worldwide.

The first tariff hike, a 25 per cent duty imposed on August 7, had already unsettled exporters. But it was Washington's decision to double that penalty to 50 per cent from August 27 citing India's continued purchase of Russian oil that triggered panic among shippers.