Indian exports may face new sanctions due to geopolitical circumstances in September 2026. However, against this, exports to the US rose approximately 21% to US $ 8.32 billion in August 2026 compared with US $ 6.83 billion in August 2025. 

India's exports had fallen in August 2025 when the tariffs first kicked in under US President Donald Trump’s administration. Tariffs on some Indian goods had reached as high as 50 per cent in August 2025. 

The August increase was the fastest growth in US-bound exports since November 2025, following several months of declines or near-flat growth.

The tariff regime changed in February 2026 when the United States removed the additional 25 per cent Russian-oil-linked levy, leaving the 25 per cent reciprocal tariff in place for affected Indian goods. The US declared a new framework to reduce tariffs on Indian goods to 18 per cent. A broader trade agreement is still under negotiation.

However, a new bill was introduced in the US Congress in September 2026 that targets sanctions against countries like India and China that continue to trade with Russia, especially oil.