Analysis: U.S. Exports Facing High Tariffs – It’s Not Cars, But Food and Beverages

Contrary to U.S. President Donald Trump’s claims, it is not automobiles but food preparations, duck meat, oilseeds, carpets, and maple syrup that are among the most heavily taxed U.S. exports, according to a Moneycontrol analysis.

These goods accounted for 50% of the $7.3 billion worth of U.S. exports that faced tariffs of 60% or more in 2023.

• Food preparations ranked as the most valuable export category among high-tariff goods, totaling $1.1 billion and facing 60%+ duties in multiple countries.
• Duck meat ($772 million) and oilseeds ($716 million) were the next most affected exports.
• Cane and beet sugar faced high tariffs in 37 countries, while smoking tobacco was taxed at 60% or more in 22 countries.
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Despite Trump's criticism of India’s tariff policies, the analysis reveals that India plays only a minor role in imposing high duties on U.S. exports.

• Among the top 10 U.S. exports facing steep tariffs, 69% came from Washington, but India accounted for just 0.2% of high-value tariff imports.
• Trump accused India, China, the EU, Brazil, Mexico, and Canada of imposing excessive duties on U.S. goods, yet auto tariffs are not a major issue for U.S. exports.
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Apart from food products, several alcoholic beverages from the U.S. also face high import tariffs:

• Whiskey is heavily taxed in 15 countries, including Indonesia and Thailand.
• Beer faces 60%+ duties in 14 countries, including India.
• Vodka and rum are taxed at high rates in 13 nations, including India.
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A previous Moneycontrol analysis found that only 0.4% of total U.S. exports faced high tariffs globally. Among the countries imposing steep duties on U.S. goods, India ranked ninth, far behind South Korea, Mexico, Canada, and China.

While Trump continues to blame India and other nations for imposing high tariffs, data shows that food and beverage exports—not cars—face the biggest trade barriers globally. Furthermore, India’s role in restricting U.S. exports is relatively small compared to other major economies.

The S&P 500 climbed 1.59% to close at 5,954.50 points, while the Nasdaq gained 1.63%, ending at 18,847.28 points. The Dow Jones Industrial Average advanced 1.39%, finishing at 43,840.91 points.

Wall Street wrapped up the week on a positive note after a volatile trading session, with Dell Technologies slipping while other tech stocks surged. The market reacted to escalating tensions between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, whose White House meeting ended in a public confrontation.

The heated exchange, broadcast live to the world, amplified investor concerns over the Russia-Ukraine war, adding to existing worries about persistent U.S. inflation and a slowing economy.

Initially, the S&P 500 fell sharply following the verbal clash but later rebounded to close higher. Investors were further rattled when Zelenskiy left the White House without finalizing a highly anticipated U.S.-Ukraine agreement on natural resource development.

"The news, if you watched it live, was concerning. It was a heated moment, and Zelenskiy is considered an ally of the U.S.," said Adam Sarhan, CEO of 50 Park Investments. "That’s why the market initially sold off, but then cooler heads prevailed. In the end, Zelenskiy will either make a deal or he won’t."

• Dell Technologies dropped 4.7% after forecasting a decline in its adjusted gross margin for fiscal 2026.
• HP Inc. slid 6.8% following disappointing quarterly profit projections.
• Nvidia and Tesla each surged nearly 4%, contributing to the S&P 500's gains.

All 11 S&P 500 sector indexes advanced, led by:

• Financials, up 2.1%
• Consumer discretionary, up 1.8%

Trading activity was heavy, with 17.5 billion shares exchanged—above the 15.4 billion average volume of the previous 20 sessions.

• For the week:
   
  • S&P 500 fell 1%
  • Nasdaq lost 3.5%
  • Dow Jones gained 1%
• For February:
   
  • Nasdaq declined 4%, its worst monthly loss since April 2024
  • S&P 500 dropped 1.45%
  • Dow Jones fell 1.6%

A Commerce Department report showed that inflation rose in January as expected, but consumer spending fell 0.2%, following a revised 0.8% increase in December.

"Spending came in lower than expected, which points to a cooling economy. This creates a dilemma for the Federal Reserve, as inflation remains persistent while economic growth slows," said Peter Cardillo, Chief Market Economist at Spartan Capital Securities. "If you combine these factors, we’re looking at stagflation."

Investors continue to gauge the Fed’s next move, as policymakers maintain a hawkish stance on interest rates.