Latest news with #DhaniJewels
News18
3 days ago
- Business
- News18
Trump Tariff Effect: Indian Exporters Face Major Order Cancellations
Business owners of both countries spent sleepless nights making frantic calls to each other, trying to salvage deals that now hang by a thread News18 As the tariff exemption granted by US President Donald Trump has officially lapsed, Indian exporters are currently grappling with a sudden jolt that has disrupted trade ties, put massive orders on hold, and sparked panic across industries. From August 7, the United States has imposed a 25% tariff on several Indian exports, and the impact has been swift and severe. Business owners of both countries spent sleepless nights making frantic calls to each other, trying to salvage deals that now hang by a thread. Even more troubling is the looming threat that this tariff may double to 50% from August 27. 'The American buyer asked him, 'After the imposition of 25% tariff, they will be burdened with 15% import duty. When it increases to 50% in future, it will not be possible to bear this load. We are not making any such product which cannot be found anywhere else'," said CEO of a garment export company handling shipments worth Rs 600 crore annually. His voice, reportedly heavy with stress, reflected not only personal anxiety but the fear that more than 8,000 of his employees could lose their livelihoods if orders keep getting cancelled. The CEO, requesting anonymity, added, 'If the bank hears about this, the next call will come from them." The tariff blow has spared no sector. Thomas Jose, director of the Kerala-based Choice Group, which exports prawns worth Rs 900 crore annually, said, 'Last night most of my American buyers have said to stop the shipment." His family has been in the prawn export business for three generations. Now, with no margin to accommodate the hike, buyers are pressing pause. According to trade data, India exports over Rs 25,000 crore worth of marine products to the US every year. But industry insiders fear this may nosedive unless there's urgent intervention. The jewellery sector has also been rocked. Vijay Kumar Mangukiya, Managing Director of Surat's Dhani Jewels, revealed, 'Last night I got a call from an American buyer and asked if we can negotiate on the price of diamonds." The buyer hoped to cushion the impact of Trump's 25% tariff. 'We can negotiate on the price up to 25% tariff, but after 50% is imposed, it will become impossible," said Mangukiya. The buyer is now considering passing the added cost to retail consumers but if that fails, cancellation is inevitable. The textile industry is facing similar threats. One exporter of 2 lakh trousers to the US recounted how his buyer said they were 'ready to bear the increased cost after 25 percent tariff". But after the exporter declined any further compromise, the American buyer threatened to shift the order to Bangladesh. India currently supplies about 28% of America's total textile imports, roughly Rs 87,525 crore worth of goods. 'At present this industry is not in a position to bear 50 percent tariff," said Vijay Agarwal, Chairman of the Indian Textile Export Promotion Council. Some exporters have already started scaling back operations. 'We have started reducing production. We had not anticipated 50 percent tariff. This is a very heartbreaking decision," said Parimal Udani, former Chairman of the same council. In Surat, the heart of India's diamond industry, the anxiety is palpable. 'American buyers have put their orders on hold," said Adil Kotwal, President of the Gems Jewellery Manufacturers Association, adding, 'If some action is not taken soon, then not only will the export of Rs 20,000 crore to the US be affected, but more than 1 lakh workers of this sector will also be in trouble." He warns that the fate of nearly 8 lakh people dependent on the diamond industry could be in jeopardy. Amid these developments, tensions between Indian exporters and American buyers have also touched on geopolitical concerns. According to The Times of India, discussions between the two sides have included pointed questions about India's oil purchases from Russia. One American buyer reportedly asked, 'Why do you need Russian oil?," underscoring the complex intersection of politics and trade that's now clouding business negotiations. view comments Location : New Delhi, India, India First Published: August 08, 2025, 18:33 IST News business Trump Tariff Effect: Indian Exporters Face Major Order Cancellations Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
India.com
3 days ago
- Business
- India.com
Trump tariffs aftermath: Panic among US businesses as orders worth billions cancelled due to..., companies to layoff workers as...
Representational Image Trump tariffs: US President Donald Trump's latest round of tariffs on Indian imports, which came into effect on August 7, has triggered panic among Indian as well as American businesses as orders worth hundreds of crore have either been cancelled or put on hold since Wednesday, when the Trump administration imposed an 25% penalty on India for buying arms and crude oil from Russia. Why US and Indian businesses are in panic? According to media reports, US businesses are apprehensive because of the additional tariffs on Indian imports which will come into effect on August 27, 2025. The issue of purchasing Russian oil has also been the subject of talks between Indian exporters and American importers, they said. 'After 25 percent tariffs, we will have to pay 15 percent import duty, but the burden will become unbearable when the 50 percent tariff rate kicks in. Our product isn't unique and can be easily replaced by other exporters,' the CEO of an an Indian garments firm that exports Rs 600 crore worth of apparel, told his US client in a phone call, the Times of India reported. The Indian exporter said that apart from his business, Trump tariffs will also affect the livelihood of over 8000 workers in his company. How Trump tariffs impact India's marine exports? Similarly, Thomas Jose, a Kerala-based exporter whose family has been exporting lobsters to the US for three generations, said that a majority of his US buyers called him after the Trump tariffs came into effect, and told him to halt shipments. Jose, who runs the Choice Group– a Kerala based export firm that ships goods worth Rs 900 annually, said his clients said that anything above 25 percent import duty would be unbearable for this business, as the imports goods would be too costly to be sold in the US. India exports marine products worth more than Rs 25,000 crore to the US each year. What about textile and jewellery industry? Meanwhile, India's jewellery industry is also under stress due to the fresh tariffs. Vijay Kumar Mangukiya, the MD of Dhani Jewels– a Surat-based jewellery exporter– revealed his US clients are asking to negotiate on diamond prices to circumvent the effect of Trump's additional 25 percent tariffs. The jeweler said price negotiations are possible till the tariff rate is 25 percent, but will become impossible at 50 percent tariffs. 'The buyer has talked about negotiating with his retail customers to bear the increased price, but if it doesn't happen, then we have no other option but to cancel the order,' he said. In the textile industry, which is likely to be hit hardest due to Trump tariffs, the CEO of an Indian textile export firm said he received a call from his American client, asking the exporter to bear the increased cost. The CEO refused, following which the buyer threatened to shift his order to Bangladesh. Indian textile industry exports goods worth Rs 87,525 crore to the US annually, which is about 28 percent of India's textile imports.
Economic Times
3 days ago
- Business
- Economic Times
‘Harrowing night for us; trade in state of shock': Exporters recall moment US imposed 50% tariff
Synopsis Exporters across India faced late-night calls from US buyers cancelling or pausing orders after President Trump doubled tariffs on Indian goods to 50%. Apparel, seafood, gems and jewellery sectors are hit hardest. Buyers refuse to absorb the added costs, forcing some orders to shift to lower-tariff countries. Exporters warn of job losses and production halts amid mounting uncertainty. AP Exporters didn't get much sleep on Wednesday night with their phones ringing off the hook as frantic US buyers kept calling. The conversations weren't pleasant. Orders were put on hold or cancelled after US President Donald Trump doubled the tariff on Indian goods to 50%.At the receiving end were garment, textile, shrimp and gems and jewellery exporters. 'In the dead of night, one US buyer is asking, why do you need the Russian oil?' said the Indian CEO of a ₹600 crore garment exporting company. 'The buyers had asked us to take a burden of 15% tariff when it was at 25% level. Now they say they can't take any of the 50% tariff load. We are not making some unique products which can't be sourced from elsewhere,' said the CEO, his voice heavy with worry, given that the business is at risk as is the livelihood of about 8,000 factory workers. He didn't want his identity to be revealed as the banks he's borrowed from could be next on the phone. ALSO READ: Indian FMCG giants mull new manufacturing units for exports to US as tariffs bite Thomas Jose, a third-generation exporter of shrimp products to the US, was on calls with buyers late into the night with most of them asking him to stop shipments. This was the refrain, he said: 'We can't accept anything that has even 1% higher duty above 25%, accepting 50% duty is out of question.' Jose is a director at Kerala-based Choice Group, which clocks annual exports of ₹900 crore, most of it to the US. India's seafood exports to the US were worth ₹24,000 crore in FY25ALSO READ: US tariffs may cost India's electronics sector up to $30 billionVijay Kumar Mangukiya, managing director of Surat-based export house Dhani Jewels, was also on the phone until late.'Last night I got calls from my US buyers asking whether we could renegotiate prices of diamonds, despite knowing the Trump government has put an extra tariff of 25%. We told them that had the tariff been only 25% we would have negotiated and absorbed a portion of the cost. But at 50% tariff it is impossible to do that,' Mangukiya said. 'The US buyers told us that they will have a discussion with the retail jewellers and customers, whether they are ready to pay extra for diamonds. However, if they pressurise us, we will have no choice but to cancel the order.'Some orders went to a neighbouring country on which the US has imposed a lower tariff.'I was about to get a purchase order for 2 lakh pieces of trousers from a US buyer. He called me around midnight and asked me if I will be able to bear this additional 25% increase in tariffs. When I said no, he decided to shift the order to Bangladesh,' said one of the country's top 10 apparel exporters who wanted to remain be sure, US buyers are also caught in a bind as the festive season for that country is approaching, so shifting orders is fraught with US accounts for 28% of the annual apparel and textile exports from India, worth a total of about ₹87,525 crore in 2024.'With 50% tariff, it is period. The trade is in a state of shock,' said Vijay Agarwal, chairman, The Cotton Textile Export Promotion Council (Texprocil).Manufacturers at the garment hub of Tiruppur in Tamil Nadu export goods worth about ₹21,000 crore annually to the US. They've got merchandise worth about ₹3,000 crore, including fabric, finished and unfinished goods, in their inventory that could soon become a liability.'The patient is in a coma--no treatment is available,' said Kumar Duraiswamy, joint secretary of the Tiruppur Exporters' Association (TEA). 'Ship only those goods that you can load by August 27. Put on hold everything else,' Duraiswamy cited buyers as the initial 25% duty takes effect on August 7, the additional 25% levy will come into force after 21 days, according to Trump's Executive Order issued on Wednesday.'We have started slowing down production, we can stop cutting fabric. But the goods which are in the pipeline and in the sewing process, must be produced,' said Premal Udani, managing director, Kaytee Corp. and former chairman of the Apparel Export Promotion Council (AEPC).'This was not expected. It is an astronomical rate. A tariff of 50% is backbreaking.'Adil Kotwal, president of the Seepz Gems & Jewellery Manufacturers Association, said that US buyers put orders on hold immediately after the 50% tariff announcement.'Some said that they are hopeful of the tariff coming down on August 27, others said going ahead they will make selective buying,' he said.'All are seeking clarity at the moment. However, there are no orders for September and October from the US at the 200 exporting units in Seepz (Santacruz Electronic Export Processing Zone), which employs 100,000 people and exports jewellery worth ₹20,000 crore to the US.'The 800,000 people who work in the diamond centre of Surat are nervous about the future.'It had been a harrowing night for us when we came to know about the 50% US tariff,' said Vinay Patel, a worker at a Surat diamond cutting and polishing unit.'All of us went to our factories early in the morning to know whether our jobs were there or not. Till now, the units have not informed us of anything, but the tension continues.'
Time of India
3 days ago
- Business
- Time of India
‘Harrowing night for us; trade in state of shock': Exporters recall moment US imposed 50% tariff
Exporters didn't get much sleep on Wednesday night with their phones ringing off the hook as frantic US buyers kept calling. The conversations weren't pleasant. Orders were put on hold or cancelled after US President Donald Trump doubled the tariff on Indian goods to 50%. Fielding Calls Late into the Night At the receiving end were garment, textile, shrimp and gems and jewellery exporters. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program 'In the dead of night, one US buyer is asking, why do you need the Russian oil?' said the Indian CEO of a ₹600 crore garment exporting company. 'The buyers had asked us to take a burden of 15% tariff when it was at 25% level. Now they say they can't take any of the 50% tariff load. We are not making some unique products which can't be sourced from elsewhere,' said the CEO, his voice heavy with worry, given that the business is at risk as is the livelihood of about 8,000 factory workers. ET Bureau He didn't want his identity to be revealed as the banks he's borrowed from could be next on the phone. ALSO READ: Indian FMCG giants mull new manufacturing units for exports to US as tariffs bite Thomas Jose, a third-generation exporter of shrimp products to the US, was on calls with buyers late into the night with most of them asking him to stop shipments. This was the refrain, he said: 'We can't accept anything that has even 1% higher duty above 25%, accepting 50% duty is out of question.' Jose is a director at Kerala-based Choice Group, which clocks annual exports of ₹900 crore, most of it to the US. Live Events India's seafood exports to the US were worth ₹24,000 crore in FY25 ALSO READ: US tariffs may cost India's electronics sector up to $30 billion Vijay Kumar Mangukiya, managing director of Surat-based export house Dhani Jewels, was also on the phone until late. 'Last night I got calls from my US buyers asking whether we could renegotiate prices of diamonds, despite knowing the Trump government has put an extra tariff of 25%. We told them that had the tariff been only 25% we would have negotiated and absorbed a portion of the cost. But at 50% tariff it is impossible to do that,' Mangukiya said. 'The US buyers told us that they will have a discussion with the retail jewellers and customers, whether they are ready to pay extra for diamonds. However, if they pressurise us, we will have no choice but to cancel the order.' Some orders went to a neighbouring country on which the US has imposed a lower tariff. 'I was about to get a purchase order for 2 lakh pieces of trousers from a US buyer. He called me around midnight and asked me if I will be able to bear this additional 25% increase in tariffs. When I said no, he decided to shift the order to Bangladesh,' said one of the country's top 10 apparel exporters who wanted to remain anonymous. To be sure, US buyers are also caught in a bind as the festive season for that country is approaching, so shifting orders is fraught with difficulty. The US accounts for 28% of the annual apparel and textile exports from India, worth a total of about ₹87,525 crore in 2024. 'With 50% tariff, it is period. The trade is in a state of shock,' said Vijay Agarwal, chairman, The Cotton Textile Export Promotion Council (Texprocil). Manufacturers at the garment hub of Tiruppur in Tamil Nadu export goods worth about ₹21,000 crore annually to the US. They've got merchandise worth about ₹3,000 crore, including fabric, finished and unfinished goods, in their inventory that could soon become a liability. 'The patient is in a coma--no treatment is available,' said Kumar Duraiswamy, joint secretary of the Tiruppur Exporters' Association (TEA). 'Ship only those goods that you can load by August 27. Put on hold everything else,' Duraiswamy cited buyers as saying. While the initial 25% duty takes effect on August 7, the additional 25% levy will come into force after 21 days, according to Trump's Executive Order issued on Wednesday. 'We have started slowing down production, we can stop cutting fabric. But the goods which are in the pipeline and in the sewing process, must be produced,' said Premal Udani, managing director, Kaytee Corp. and former chairman of the Apparel Export Promotion Council (AEPC). 'This was not expected. It is an astronomical rate. A tariff of 50% is backbreaking.' Adil Kotwal, president of the Seepz Gems & Jewellery Manufacturers Association, said that US buyers put orders on hold immediately after the 50% tariff announcement. 'Some said that they are hopeful of the tariff coming down on August 27, others said going ahead they will make selective buying,' he said. 'All are seeking clarity at the moment. However, there are no orders for September and October from the US at the 200 exporting units in Seepz (Santacruz Electronic Export Processing Zone), which employs 100,000 people and exports jewellery worth ₹20,000 crore to the US.' The 800,000 people who work in the diamond centre of Surat are nervous about the future. 'It had been a harrowing night for us when we came to know about the 50% US tariff,' said Vinay Patel, a worker at a Surat diamond cutting and polishing unit. 'All of us went to our factories early in the morning to know whether our jobs were there or not. Till now, the units have not informed us of anything, but the tension continues.'
