The tariffs will allow President Trump to take a cut of Nvidia’s chip sales to China while putting off a decision about imposing higher taxes on the chip industry.

The report expects export resilience to continue through FY27E. Merchandise exports are projected to grow by 4.5-5 per cent in FY27E.

India's merchandise exports have shown resilience despite tariff headwinds and global demand volatility. The report mentioned that this performance has been supported by sustained strength in non-tariffed and higher value-added sectors.

“Effective immediately, any Country doing business with the Islamic Republic of Iran will pay a Tariff of 25% on any and all business being done with the United States of America,” Trump posted on Truth Social Monday night. “This Order is final and conclusive.”

India's exports grew marginally despite global trade uncertainties, with a recorded growth of 1.87% in December 2025, reaching USD 38.5 billion. Imports increased by 8.7%, widening the trade deficit to USD 25 billion.