Navigating Trade Agreements and Tariff Changes: How LiquidMind Empowers India-US Trade
- Support LIQUIDMIND ® द्रवमनः कृत्रिमबुद्धिः
- May 18
- 2 min read
Trade agreements and tariffs are fundamental levers shaping international commerce, influencing everything from supply chains to market access. Recent tariff shifts under the Trump administration have reshaped India-US trade dynamics, bringing both obstacles and openings for exporters and importers alike.
The Changing India-US Trade Environment
The United States is India’s largest trading partner, with India maintaining a substantial trade surplus in merchandise goods. In FY 2023-24, India’s exports to the US amounted to roughly US$77 billion, spanning sectors like gems and jewellery, pharmaceuticals, petrochemicals, electronics, and machinery.
However, tariff hikes introduced by the US have imposed higher costs on Indian exports, with some duties reaching up to 56% on dairy products and nearly 28% on seafood, challenging Indian competitiveness in the US market.
Sectoral Impacts
Gems and Jewellery: The US accounts for 30% of India’s jewellery exports, but any tariff or duty-free access changes risk destabilizing this sector.
Automobile Components: Subject to a 25% tariff, Indian manufacturers face supply chain realignments and cost pressures.
Electronics: Tariffs between 1.2% and 10.8% on electronics, including smartphones assembled in India, could reduce demand.
Textiles and Apparel: Exports worth US$9.6 billion risk losing their competitive edge with rising duties.
Meanwhile, the pharmaceutical sector remains mostly exempt from new tariffs, preserving a vital lifeline in global generic drug supply.
Opportunities and Government Response
India’s robust domestic demand and initiatives like “Make in India” offer resilience and the chance to attract trade diverted from other countries. The government is actively
Modeling tariff impact scenarios.
Launching export restriction tracking platforms.
Negotiating trade agreements with the US.
Offering production-linked incentives to sectors like semiconductors and renewable energy.
Increasing strategic imports from the US in defense, aerospace, and technology.
How LiquidMind Addresses Trade Challenges
Navigating these evolving trade regulations requires intelligent solutions that manage complexity and mitigate risk. Here’s how LiquidMind supports businesses through these challenges:
Challenge | LiquidMind Solution |
Inconsistent or missing HS codes | The AI-powered classification engine recommends accurate, compliant HS codes, along with risk insights. |
Lack of real-time alerts | The predictive system flags regulatory risks and missing fields before submission, preventing costly errors. |
Fragmented data from multiple sources | Smart data ingestion consolidates information from emails, PDFs, and TMS platforms, ensuring seamless workflows. |
These capabilities enable companies to:
Stay Compliant: Accurate HS code classification reduces customs delays and penalties.
React Quickly: Real-time alerts empower proactive handling of tariff changes and regulatory updates.
Streamline Operations: Integrated data from diverse sources enhances visibility and decision-making.
Turning Tariff Challenges into Strategic Opportunities
By combining government initiatives with LiquidMind’s AI-driven trade intelligence and automation, Indian exporters and importers can:
Optimize supply chains and reduce costs.
Identify and capitalize on new market opportunities.
Mitigate risks linked to tariff volatility.
Improve overall operational efficiency in cross-border trade.
References
Authored by Arjun PV