Latest news with #ApparelExportPromotionCouncil
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First Post
2 days ago
- Business
- First Post
Indian exporters work out 3-way deal with US buyers to beat Trump tariffs, expedite consignments
Indian exporters and their American partners have worked out a three-way arrangement to distribute the burden of US President Donald Trump's tariffs between Indian exporters, American importers, and American customers. But Indian exporters fear that even such an arrangement may not save them from 50% tariffs. read more Textiles and clothing, gems and jewellery, shrimp, leather and footwear, chemicals and electrical and mechanical machinery would be most affected. Reuters Several Indian exporters have worked out a three-way deal with their American partners to tackle 50 per cent tariffs imposed by US President Donald Trump. Under the deal, Indian exporters and their American partners are splitting the burden of tariffs in three equal halves, according to The Times of India. The arrangement, which began when Trump imposed the 10 per cent tariff in April, means that the Indian exporter will provide a discount amounting to one-third of the total increased cost of tariffs (7-8 per cent in case of 25 per cent tariffs), the American importer will cut its margin by the same percentage, and the rest of the increased cost will be passed on to customers, as per the newspaper. STORY CONTINUES BELOW THIS AD ALSO READ: Trump's 50% tariffs could drag Indian GDP growth below 6% — here's what analysts say Trump on July 31 imposed 25 per cent tariff on India when he announced country-specific tariffs for more than 60 countries. He topped that with 25 per cent additional tariff on Wednesday for India's purchase of Russian oil, taking total tariffs to 50 per cent. They are also frontloading exports and dispatching consignments before the kick-in of tariffs. Even 3-way burden-sharing may not save exports from 50% tariffs: Exporters Exporters are concerned that even the three-way split of tariffs' burden may not save themselves once 50 per cent tariffs kick in as some export-oriented, labour-intensive sectors like textiles run on low margins and tariffs will squeeze their margins further. They said that 25 per cent could be tolerated but 50 per cent could cripple them. The 25 per cent additional tariff —taking overall tariffs on India to 50 per cent— will kick in on August 27. For goods shipped before that date, the previous tariff rates will apply till Sept. 27. Apparel Export Promotion Council (APEC) Chairman Sudhir Sekhri told ToI that 50 per cent tariffs are a 'huge setback' to the labour-intensive apparel export industry. 'There is no way 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 govt steps in with direct fiscal support to the industry,' said Sekhri. Separately, Tirupur Exporters' Association President Raja M Shanmugam sought an intervention from the government and argued that it is now no longer feasible to export to the United States due to the low margins. For gems and jewellery too, the prognosis is not good, with companies predicting a steep fall in exports and bankers said that much of the exports are on credit and there is a risk of default, the newspaper reported. STORY CONTINUES BELOW THIS AD
New Indian Express
2 days ago
- Business
- New Indian Express
India Inc SOS to government as US tariffs kick in
NEW DELHI: With the US imposing a massive 50% tariff on Indian products, the affected sectors—primarily textiles, gems & jewellery, and MSMEs—have warned of a possible disruption of critical supply chains, plummeting exports, and thousands of job losses. These sectors have also sought both fiscal and non-fiscal support from the government. However, government officials and industry experts say any support would fall short of offsetting the business losses caused by the high tariffs. On Wednesday, the US imposed an additional 25% tariff over and above the earlier-announced 25% tariff on Indian exports, to penalise India for its continued crude oil imports from Russia. The first 25% tariff took effect on Thursday, while the second levy will kick in on August 27. A senior official from the Apparel Export Promotion Council (AEPC) said businesses might have stayed afloat with 25% tariff by absorbing 10-15% of it through margin cuts. 'But with a 50% tariff, doing business with the US has become unviable. Many MSMEs will shut shop,' the official said, warning that lakhs of jobs are at risk.
Time of India
3 days ago
- Business
- Time of India
50% US tariff on Indian apparel exports could be death knell for small firms: AEPC
Indian apparel exporters are worried about new US tariffs. The Trump administration is doubling tariffs on Indian goods to 50 percent. Apparel Export Promotion Council fears this will devastate small businesses. They are seeking government support to offset the impact. The US is a major market, accounting for 33 percent of India's garment exports. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Seeking immediate fiscal support of the government, apparel exporters body AEPC on Thursday said the doubling of tariffs to 50 per cent by the Trump administration on Indian goods will sound the death knell for micro and medium enterprises, particularly those heavily dependent on the American Export Promotion Council (AEPC) Chairman Sudhir Sekhri said the announcement is a huge setback to the labour-intensive 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 government steps in with direct fiscal support to the industry," he US is a key market for Indian ready-made garment exports. America accounts for 33 per cent of India's total garment exports in 2024-25, India's exports to the US from this sector include apparel-knitted (USD 2.7 billion), apparel-woven (2.7 billion), and textiles, made ups (USD 3 billion)."India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024 and ranks fourth among the top RMG exporters to the United States ," Sekhri August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August White House said the measure responds to India's continued purchase of Russian oil.
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Business Standard
3 days ago
- Business
- Business Standard
US tariff on Indian apparel could be death knell for small firms: AEPC
Seeking immediate fiscal support of the government, apparel exporters body AEPC on Thursday said the doubling of tariffs to 50 per cent by the Trump administration on Indian goods will sound the death knell for micro and medium enterprises, particularly those heavily dependent on the American market. Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said the announcement is a huge setback to the labour-intensive 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 government steps in with direct fiscal support to the industry," he said. The US is a key market for Indian ready-made garment exports. America accounts for 33 per cent of India's total garment exports in 2024. In 2024-25, India's exports to the US from this sector include apparel-knitted (USD 2.7 billion), apparel-woven (2.7 billion), and textiles, made ups (USD 3 billion). "India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024 and ranks fourth among the top RMG exporters to the United States," Sekhri said. On August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. The White House said the measure responds to India's continued purchase of Russian oil. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
NDTV
3 days ago
- Business
- NDTV
Worried Over Trump Tariffs, Textile Exporters Fear Unemployment Crisis
New Delhi: The additional 25% tariff imposed by US President Donald Trump has left Indian textile exporters worried, with traders waiting for financial support from the government to sustain their businesses. Textile and apparel products are among the most exported products from India to the US. Being labour-intensive, this sector is expected to be among the most affected due to the 25% additional tariff announced by President Donald Trump last evening. The US reciprocal tariff rate now stands at 50% for India. For textile exports, the applicable tariff rate is between 59-63.9%, the highest among all affected sectors. Besides, mobile phones, cut and polished gemstones, and pharma products top India's export charts, and are also bracing for tariff impact. Indian exporters will not be able to bear the impact of the additional US tariff, warned Sudhir Sekhri, president of Apparel Export Promotion Council (APEC). "If the Indian government does not provide a fiscal support package to the affected exporters, like the Chinese government is providing to its exporters, this increased reciprocal tariff can create unemployment in the export sector. Textile is a labour-intensive sector. It will be affected the most," Mr Sekhri told NDTV. What makes the textile sector more vulnerable is a lower US tariff imposed on rival economies, which would work in favour of other countries in the competitive export market. This will raise difficulties for the Indian exporters, said Ajay Sahai, CEO of the Federation of Indian Export Organisations. "After the additional 25% reciprocal tariff imposed by US President Donald Trump on India, the total reciprocal tariff on India has now become 50%. This will have a very bad impact on India's export sector. The difference in tariffs imposed on Indian exporters and their competitors in the international market will be 30% to 35% in some sectors. It will be difficult for Indian exporters to absorb this additional burden," he told NDTV. In a calm pushback, the government had yesterday snubbed the extra tariffs as "unfair, unjustified and unreasonable". The tariff announcement comes ahead of the US officials' visit to India for the fifth round of trade talks. India and the US had begun negotiations for a balanced and mutually beneficial bilateral trade agreement (BTA) in March, with a goal to complete the first phase of the agreement by October-November. Since then, several virtual meetings have been held between the two sides.
