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Time of India
2 hours ago
- Business
- Time of India
Donald Trump tariffs: Indian exporters on edge as move sparks cancellations; US buyers hold orders
AI image Exporters across sectors are worried after US President Donald Trump declared a 25 per cent tariff on Indian goods from August 1, along with an unspecified penalty linked to India's purchases of Russian crude oil and military equipment. The announcement has led to immediate jitters in trade circles, with many buyers from the US holding or cancelling orders as they await more clarity. 'I have started receiving communication from my buyers for cancellation of orders. We are a bit worried,' said S C Ralhan, president of the Federation of Indian Export Organisations (FIEO) and a hand tool exporter from Ludhiana, as quoted by news agency PTI. He added that the industry is waiting for the US executive order to understand the full scope of the tariff and penalty terms. A major point of concern is the unspecified penalty component. 'If it will be imposed in addition to the 25 per cent, then buyers will stop placing orders,' said Arvind Goenka, a plastic product exporter, as per PTI. A leather and footwear exporter also warned that nearly 60 per cent of orders could be cancelled if the tariffs are implemented from August 1. 'US buyers are waiting for clarity. It is creating uncertainty,' the exporter said. The US is India's largest trading partner and accounted for about 18 per cent of total exports in 2024-25. The two-way trade reached $186 billion that year, with India recording a total goods and services trade surplus of $44.4 billion. Exporters argue that India's competitors such as Vietnam and Indonesia currently face lower import duties in the US, 20% and 19%, respectively, giving them a clear pricing advantage. 'We will be seriously impacted,' said Chandrima Chatterjee, secretary general of the Confederation of Indian Textile Industry (CITI). 'While most of us have taken the 25 per cent tariff with a pinch of salt, the penalty is where we are extremely concerned', Chatterjee added. According to Cybex Exim Solutions, Indian textile and garment exporters, who send about $5.6 billion worth of ready-made garments to the US annually, will be among the hardest hit. 'The 25 per cent tariff is a big blow. Many exporters might face order cancellations or pressure to reduce prices. Countries like Vietnam and Indonesia now have a pricing edge,' it said. The industry is hopeful that India and the US will soon finalise an interim trade deal to remove or ease the imposed tariff and penalty. Until then, businesses remain in limbo, trying to navigate through cost pressures, buyer hesitations, and trade uncertainty. Stay informed with the latest business news, updates on bank holidays and public holidays . Discover stories of India's leading eco-innovators at Ecopreneur Honours 2025
Time of India
4 hours ago
- Business
- Time of India
Exporters worried over Trump's tariff as US buyers either holding back or cancelling orders
Exporters are worried over the impact of the 25 per cent tariffs announced by the US from August 1 on Indian goods, as American buyers are either cancelling or holding back orders until there is a clarity on the penalty component of the announcement. Federation of Indian Export Organisations (FIEO) President S C Ralhan said the industry is waiting for the US executive order to get a clear picture on the tariff and penalty. Explore courses from Top Institutes in Please select course: Select a Course Category Technology Design Thinking Project Management MCA Finance healthcare Healthcare PGDM Digital Marketing Management Data Science others Data Analytics Cybersecurity Leadership Artificial Intelligence Operations Management Others Product Management Public Policy Data Science CXO Degree MBA Skills you'll gain: Duration: 12 Weeks MIT xPRO CERT-MIT XPRO Building AI Prod India Starts on undefined Get Details US President Donald Trump on Wednesday announced the imposition of a 25 per cent tariff on all goods coming from India starting August 1, plus an unspecified penalty for buying Russian crude oil and military equipment. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo "I have started receiving communication from my buyers for cancellation of orders. We are a bit worried," Ralhan, hand tool exporter from Ludhiana, said. Expressing concern on the announcement, plastic product exporter Arvind Goenka said the sector is worried as India's competing nations such as Vietnam and Thailand are facing lower import duties than India. Live Events "The penalty part is worrisome. If it will be imposed in addition to the 25 per cent, then buyers will stop placing orders," he said. A leather and footwear exporter said these tariffs are going to have serious implications on India. "US buyers are waiting for clarity. It is creating uncertainty. If the new tariffs will be imposed from August 1, about 60 per cent of orders will be cancelled," the exporter said. The trading community is expressing hope that India and the US will soon finalise an interim trade deal as the pact would help remove this 25 per cent tariff and penalty. During 2021-25, the US was India's largest trading partner. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade. With America, India had a trade surplus (the difference between imports and exports) of USD 35.32 billion in goods in 2023-24. It was USD 41 billion in 2024-25 and USD 27.7 billion in 2022-23. In 2024-25, bilateral trade between India and the US reached USD 186 billion (exports USD 86.5 billion and imports USD 45.3 billion). In services, India exported an estimated USD 28.7 billion and imported USD 25.5 billion, adding a USD 3.2 billion surplus. Altogether, India ran a total trade surplus of about USD 44.4 billion with the US. In 2024, India's main exports to the US included drug formulations and biologicals (USD 8.1 billion), telecom instruments (USD 6.5 billion), precious and semi-precious stones (USD 5.3 billion), petroleum products (USD 4.1 billion), vehicle and auto components (USD 2.8 billion), gold and other precious metal jewellery (USD 3.2 billion), ready-made garments of cotton, including accessories (USD 2.8 billion), and products of iron and steel (USD 2.7 billion). Imports included crude oil (USD 4.5 billion), petroleum products (USD 3.6 billion), coal, coke (USD 3.4 billion), cut and polished diamonds (USD 2.6 billion), electric machinery (USD 1.4 billion), aircraft, spacecraft and parts (USD 1.3 billion), and gold (USD 1.3 billion). Of the USD 45 billion worth of exports from the US, USD 20 billion came from just few items -- petroleum, coal, petroleum coke, diamonds, gold and scrap materials.
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First Post
23-07-2025
- Business
- First Post
India-UK trade deal to boost textiles, pharma, gems exports: FIEO
The deal will be inked on July 24, during Prime Minister Narendra Modi's visit to the United Kingdom. It aims to double bilateral trade, potentially reaching $120 billion by 2030 read more The proposed trade agreement between India and the United Kingdom is expected to boost industries such as textiles, leather, gems and jewellery, pharmaceuticals, marine and engineering items, exporters' association FIEO said on Wednesday. The deal will be inked on July 24, during Prime Minister Narendra Modi's visit to the United Kingdom. It aims to double bilateral trade, potentially reaching USD 120 billion by 2030. The Federation of Indian Export Organisations (FIEO) has stated that the deal is likely to abolish duties on Indian apparel and textiles, making them more competitive in the UK market. STORY CONTINUES BELOW THIS AD It will also boost exports in high-value industries such as gems, jewellery, and pharmaceuticals. Improved market access and reduced tariffs will further benefit Indian leather and footwear, auto components, spices, tea, and processed foods, it said, adding the FTA is also expected to streamline regulatory approvals for Indian pharmaceutical products in the UK. Moreover, it could ease mobility and open up new opportunities for Indian IT, business services and professional services firms, FIEO President S C Ralhan said.
Time of India
23-07-2025
- Business
- Time of India
India-UK trade pact to help boost exports of labour-intensive sectors, says exporters' body FIEO
The proposed trade pact between India and the UK is likely to benefit sectors such as textiles, leather, gems and jewellery , pharmaceuticals, marine and engineering goods, exporters' body FIEO said on Wednesday. The agreement will be signed on July 24, during Prime Minister Narendra Modi's visit to the UK. It is expected to help double bilateral trade by 2030 to USD 120 billion. Explore courses from Top Institutes in Please select course: Select a Course Category Project Management Public Policy Operations Management PGDM Others Design Thinking Cybersecurity Leadership Product Management MBA Technology Data Analytics Digital Marketing Management Data Science MCA CXO Data Science Degree Finance healthcare Healthcare others Artificial Intelligence Skills you'll gain: Portfolio Management Project Planning & Risk Analysis Strategic Project/Portfolio Selection Adaptive & Agile Project Management Duration: 6 Months IIT Delhi Certificate Programme in Project Management Starts on May 30, 2024 Get Details Skills you'll gain: Project Planning & Governance Agile Software Development Practices Project Management Tools & Software Techniques Scrum Framework Duration: 12 Weeks Indian School of Business Certificate Programme in IT Project Management Starts on Jun 20, 2024 Get Details The Federation of Indian Export Organisations (FIEO) also said that the agreement is likely to eliminate tariffs on Indian garments and textiles, enhancing their competitiveness in the UK market. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cat Keeps Hugging Friend Before Going To The Vet – The Vet Paled When He Saw Them Tips and Tricks Undo It will also strengthen exports in high-value sectors like gems and jewellery and pharmaceuticals. Improved market access and reduced tariffs will further benefit Indian leather and footwear, auto components, spices, tea, and processed foods, it said, adding the FTA is also expected to streamline regulatory approvals for Indian pharmaceutical products in the UK. Live Events Moreover, it could ease mobility and open up new opportunities for Indian IT, business services and professional services firms, FIEO President S C Ralhan said.
Time of India
16-07-2025
- Business
- Time of India
Trade deficit at 4-month low, goods exports flat
Representative image NEW DELHI: India's goods exports remained flat at $35.1 billion in June, while imports dipped 3.8 per cent to $53.9 billion, helping narrow the trade deficit to a four-month low of $18.8 billion, latest data released Tuesday showed. Imports dipped due to a sharp fall in shipment of gold (down 26 per cent to $1.8 billion), crude petroleum (down 8.4 per cent to $13.8 billion) and diamond imports and coal. On the other hand, exports remained flat, despite a 16 per cent decline in the export of petroleum products. Cumulative exports - goods and services - rose 6.6 per cent to $68 billion, driven by a 14 per cent rise in services to $32.8 billion, making govt upbeat on the overall trend. Combined imports were almost flat at $71.5 billion, resulting in the trade deficit halving to $3.5 billion in June from $7.2 billion a year ago. "If the growth continues like this, then we are going to cross the last year's exports figures," said commerce secretary Sunil Barthwal. He said that geopolitical tensions and global economic uncertainties were impacting exports and govt was engaging with exporters to resolve these logistics and risk management issues. "This performance has come despite challenging global conditions," said Fieo president S C Ralhan. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
