India, Singapore, China Exports Shift Amid Tensions

India's merchandise trade deficit narrowed to $21.88 billion in May 2025, as exports to the US surged nearly 17% despite a modest 2.2% decline in overall exports, indicating limited impact from recent US tariffs. Geopolitical tensions, particularly following the Iran-Israel conflict, have increased shipping costs and raised concerns over supply chain disruptions for India. Meanwhile, Singapore's key exports unexpectedly declined by 3.5% year-on-year in May, leading to downward revisions of its growth forecasts and increased recession risk. China's exports to the US dropped sharply by 34.5%, while its exports to India and the EU rose, highlighting a broader realignment in global trade flows. The Indian government continues to promote key export sectors and negotiate trade agreements to navigate global uncertainties. These trends underscore the shifting global trade landscape amid ongoing tariffs and geopolitical instability.