US tariff relief has calmed export sentiment, for now, in a volatile trade environment, according to rating agency ICRA. In a recent statement, the agency noted that the outlook on apparel exports has been restored to `stable`, while the outlook for the cut and polished diamonds sector remains negative.

The rating agency highlighted that the downward reset in US tariffs to 18 percent from the elevated levels seen in 2025 represents a "relatively smooth landing for Indian exporters at a time when global trade dynamics remain fluid." This change follows a US-India joint statement that lowered reciprocal tariffs from 25 percent to 18 percent. Additionally, an additional ad valorem duty of 25 percent on Indian imports, which had been introduced in August 2025 in relation to Russian oil imports, has been eliminated by a US Presidential Executive Order.