US President Donald Trump has threatened to impose retaliatory tariffs on Indian goods, if we do not lower our duties on American exports. If the threat is carried out, it will exacerbate an already difficult situation for Indian exports. The latest GDP estimates show that exports increased by 6.3% at current prices in the December 2017 quarter, well below the 11.9% growth in GDP at current prices. In contrast, International Monetary Fund (IMF) data for emerging and developing Asia show that the volume of export of goods and services from the region picked up smartly in 2016 and 2017. No such improvement is visible in Indian exports.