Textiles, engineering goods to seafood: Trump's 50% tariff bombshell sends shockwaves across industries

Economic Times

3 days ago

iStock With total tariffs on Indian imports now reaching 50%, there is widespread disappointment and concern across various sectors, including textiles, engineering goods, and seafood.
The additional 25% tariff imposed by US President Donald Trump on Wednesday has further unsettled Indian exporters, who were already facing difficulties due to the earlier 25% tariffs. With total tariffs on Indian imports now reaching 50%, there is widespread disappointment and concern across various sectors, including textiles, engineering goods, and seafood.
Pankaj Chadha, Chairman of EEPC India, a trade and investment promotion organisation, called the Trump administration's decision very disappointing. 'It potentially threatens to derail the ongoing trade talks between the two countries. The additional duty, above the current 25%, will take effect in 21 days, suggesting that the decision leaves room for negotiations. The US is the top market for Indian engineering goods, and we hope that the ongoing trade negotiations for an interim deal will be finalised sooner than later,' he said.
In FY25, India's exports of engineering goods to the US increased by 8.7% to $19.15 billion from $17.62 billion in 2023-24. This growth highlights the robust relationship and potential for trade between the two countries.Textiles is another sector with significant exports to the US. In 2025, India's textile and apparel shipments to the US are estimated to be $9-10 billion across all major categories, according to data from the United States International Trade Commission. The tariff will hit the sector hard, which primarily consists of MSMEs and operates on extremely low margins.Sudhir Sekhri, Chairman of the Apparel Exports Promotion Council, dubs Trump's 50% tariff a huge setback to the labour-intensive apparel export industry. 'There is no way the industry can absorb this. I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the GoI steps in with direct fiscal support to the industry,' he said.
Mukesh Kansal, Chairman, CTA Apparels, pointed out that currently competing nations enjoy borrowing rates as low as 2-4.5%, while Indian exporters face 8-12%. This steep tariff will make Indian products uncompetitive in the global market. 'Affordable trade finance must be a priority to prevent margin erosion. Further, beyond the US, exporters should aggressively target the UK, Europe, the Middle East, and emerging economies to mitigate single-market risks. This is a defining moment for the textile & apparel sector. By aligning government support with industry innovation, India can transform this short-term disruption into a long-term opportunity to become a more competitive and diversified global sourcing hub,' he said.Former G20 Sherpa Amitabh Kant, in a social media post on X, said, 'Trump has provided us a once-in-a-generation opportunity to take the next big leap on reforms. The crisis must be fully utilised.' — amitabhk87 (@amitabhk87) The Indian seafood sector is also looking at uncertainty. The US is a major buyer of Indian shrimp, with annual imports exceeding $7 billion from India. The US accounts for more than 50% of India's total shrimp exports.Divya Kumar Gulati, Chairman at the Compound Livestock Feed Manufacturers Association (CLFMA) of India, highlights that Ecuador, a major competitor for India in seafood exports, faces only a 10-14% tariff. It is estimated that Indian exporters are already facing losses of Rs 600 crore due to order cancellations and containers stuck in transit as these tariffs take effect.'Whatever it takes, India will not compromise on the interests of its farmers, livestock keepers and fishermen,' Prime Minister Narendra Modi said on Thursday. — narendramodi (@narendramodi) 'Margins in the industry are a slim 4-5%, making it impossible to absorb such steep tariff hikes, and exporters fear a significant long-term loss of market share, with Ecuador likely to replace India as the top shrimp supplier to the US. Even before the new tariffs, Indian seafood exporters were facing stiff price competition and falling prices thanks to increased supply from Ecuador. Shrimp prices dipped by 20-25% in the last year. The oversupply continues to depress global prices, which further erodes profits and export earnings for Indian producers,' he says.Pavan Kosaraju, CEO of AquaExchange Agritech Pvt. Ltd, an aquaculture marketplace platform, says that the immediate impact on the industry has been a 24-hour halt in purchases of shrimp just to understand the impact of the tariffs and to take corrective actions.'But from what we hear from the industry sources, we believe there will be a 10-15% reduction in the price of purchase from the farmers. So in the very short run, that's going to significantly impact the farmers, as it might lower the production cost for the farmer, and they might have to sell their emergency harvest for a loss too,' he says, adding that with the countervailing costs, the total tariffs will come to 58%, almost a 40% difference compared to Indonesia (18%) and Ecuador (14%).