‘Why Russian oil?': Orders to US put on hold, cancelled overnight – Indian exporters recount ‘harrowing night' after Trump's 50% tariffs
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A Rs 600 crore garment export company's CEO, who wished to remain anonymous received questions about Russian oil from US buyers, reported the Economic Times. 'In the dead of night, one US buyer is asking, why do you need the Russian oil?' said the Indian CEO of a Rs 600 crore garment exporting company.
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The CEO noted that earlier, with a 25% tariff rate, US buyers were willing to share the burden, but with a 50% rate they have refused, endangering 8,000 workers' jobs.
Choice Group director Thomas Jose told the financial daily that US buyers are demanding shipment halts. Choice Group's annual exports, primarily to the US, amount to Rs 900 crore. India's seafood exports to the US reached Rs 24,000 crore in FY25.
Dhani Jewels' managing director, Vijay Kumar Mangukiya, discussed price renegotiations with US buyers. A prominent apparel exporter lost a 200,000-trouser order to Bangladesh.
The US represents 28% of India's annual apparel and textile exports, valued at Rs 87,525 crore in 2024.
Vijay Agarwal, chairman of The Cotton Textile Export Promotion Council (Texprocil) also shared his insights with ET on how the trade sector was in shock. 'With 50% tariff, it is period. The trade is in a state of shock,'he said. Tiruppur exporters, who annually send Rs 21,000 crore worth of goods to the US, face uncertainty with Rs 3,000 crore in inventory.
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TEA joint secretary Kumar Duraiswamy reported buyers limiting shipments to August 27.
The initial 25% duty begins August 7, with an additional 25% following 21 days later. Kaytee Corp.'s managing director Premal Udani confirmed production slowdown. Seepz Gems & Jewellery Manufacturers Association president Adil Kotwal reported suspended orders, affecting 100,000 workers.
Surat's 800,000 diamond workers have expressed concern. "We rushed to our factories early morning to check our employment status," said Vinay Patel, a diamond unit worker, adding that, "It had been a harrowing night for us when we came to know about the 50% US tariff.'
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