Tariff clock ticks away: Indian exporters dread what Trump might bring two days from now
Trump
's
tariff
deadline almost at hand, Indian exporters are facing a greatly uncertain landscape. Orders are being held back as businesses await clarity on the US President's next steps, the Times of India reported on July 30. According to Sudhir Sekhri, chairman of the Apparel Export Promotion Council, the situation remains quite unpredictable.
American store shelves are running low, but many buyers are delaying production until the tariff situation becomes clearer, Sekhri told ToI's Sidhartha.
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As the deadline for tariffs draws near, the focus remains on how the unfolding developments will shape the future of Indian exports. With discussions set to resume on August 25, there remains a glimmer of hope for a last-minute resolution. However, for now, uncertainty reigns, leaving exporters in a precarious position as they navigate the complexities of international trade.
Kirit Bhansali, the chairman of the Gem & Jewellery Export Promotion Council, shared a similar sentiment. While he remains hopeful for a favourable outcome for India, he acknowledged that the current tariff uncertainty has already affected order volumes.
While some shipments are being processed at a 10% duty, many buyers are holding off, having stocked up during a shipping rush in April.
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These concerns extend beyond the apparel and jewellery sectors. Satish Wagh, chairman of Chemexcil, noted that the marginal growth of just 0.1% in exports to the US during the April to June 2025 period indicates stagnation, likely due to the looming tariff announcements.
There has been a notable decline in shipments of agrochemicals and dye intermediates, suggesting that buyers may be reconsidering their inventory needs or renegotiating contracts in light of potential price increases.
Despite the challenges, trade officials remain cautiously optimistic. Ajai Sahay, director general of Fieo, pointed out that while the delay in the India-US Bilateral Trade Agreement (BTA) is concerning, it is unlikely to hinder long-term trade prospects.
Both exporters and importers recognise that a deal will eventually be reached and are willing to absorb short-term costs in anticipation of better conditions, Sahay said.
The garment sector is particularly strained. China has ramped up its exports to Europe, capitalising on the tariffs imposed by the US, which has made it harder for Indian exporters to compete.
Sekhri informed that during this lean season from May to August, Indian exporters typically operate at around 70% capacity. However, the current situation has reduced this to about 50%, further complicating matters.
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