Air cargo flows from India to the US have fallen 14% in the week of September 1–7, marking the first clear impact of Washington’s steep tariff hike on Indian goods, according to WorldACD Market Data. The drop follows the doubling of US import tariffs on Indian products from 25% to 50%, effective August 27, imposed over India’s continued Russian oil purchases.
The decline comes despite a surge just before the new rates took effect, when shipments from India to the US jumped 28% week-on-week (Aug 18–23) as exporters rushed cargo ahead of the deadline. India–US tonnages had been rising in recent months as US buyers looked for alternatives to China, but the tariff hike has dampened momentum. Meanwhile, India–Europe volumes have grown steadily, now 8% higher year-on-year, while cargo from Sri Lanka to the US is up 13% compared with last September.
Freight rates have also eased, with India–US spot prices dropping below $4/kg for the first time in months, at $3.99—around 22% lower than a year ago. The tariff tensions will be on the table when India and the US resume trade talks in New Delhi on September 16, led by US Assistant Trade Representative Brendan Lynch.
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