Indian exports shift from USA to Europe after tariffs
Air cargo flows from India are undergoing a sharp rebalancing. According to WorldACD, exports to the USA plummeted after Washington raised import tariffs on Indian goods from 25% to 50% on 27 August. Tonnages had briefly surged by 28% in the week before the increase, but fell by 12% in week 35 and by a further 14% in week 36. Spot rates in the India–US trade lane dropped below USD 4/kg, which was around 22% lower than a year ago.
By contrast, India–Europe volumes have climbed steadily in recent weeks, up by 8% year-on-year at the start of September. Analysts see this as part of a wider pattern. Capacity is being diverted from trans-Pacific to Europe as new US tariff policies and the suspension of de minimis duty-free exemptions reshape trade flows. For Indian exporters, Europe is emerging as a more stable growth market, while US-bound shipments face growing uncertainty. (ah)