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News18
08-08-2025
- 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.
Time of India
08-08-2025
- Business
- Time of India
‘Why Russian oil?': Orders to US put on hold, cancelled overnight – Indian exporters recount ‘harrowing night' after Trump's 50% tariffs
US buyers frantically contacted Indian exporters throughout Wednesday night, delivering unsettling news. Orders faced suspension or cancellation following US President Donald Trump's decision to increase tariffs on Indian goods to 50%. Tired of too many ads? go ad free now A Rs 600 crore garment export company's CEO, who wished to remain anonymous received questions about Russian oil from US buyers, reported the Economic Times. 'In the dead of night, one US buyer is asking, why do you need the Russian oil?' said the Indian CEO of a Rs 600 crore garment exporting company. Also read: The CEO noted that earlier, with a 25% tariff rate, US buyers were willing to share the burden, but with a 50% rate they have refused, endangering 8,000 workers' jobs. Choice Group director Thomas Jose told the financial daily that US buyers are demanding shipment halts. Choice Group's annual exports, primarily to the US, amount to Rs 900 crore. India's seafood exports to the US reached Rs 24,000 crore in FY25. Dhani Jewels' managing director, Vijay Kumar Mangukiya, discussed price renegotiations with US buyers. A prominent apparel exporter lost a 200,000-trouser order to Bangladesh. The US represents 28% of India's annual apparel and textile exports, valued at Rs 87,525 crore in 2024. Vijay Agarwal, chairman of The Cotton Textile Export Promotion Council (Texprocil) also shared his insights with ET on how the trade sector was in shock. 'With 50% tariff, it is period. The trade is in a state of shock,'he said. Tiruppur exporters, who annually send Rs 21,000 crore worth of goods to the US, face uncertainty with Rs 3,000 crore in inventory. Tired of too many ads? go ad free now TEA joint secretary Kumar Duraiswamy reported buyers limiting shipments to August 27. The initial 25% duty begins August 7, with an additional 25% following 21 days later. Kaytee Corp.'s managing director Premal Udani confirmed production slowdown. Seepz Gems & Jewellery Manufacturers Association president Adil Kotwal reported suspended orders, affecting 100,000 workers. Surat's 800,000 diamond workers have expressed concern. "We rushed to our factories early morning to check our employment status," said Vinay Patel, a diamond unit worker, adding that, "It had been a harrowing night for us when we came to know about the 50% US tariff.' Stay informed with the latest business news, updates on bank holidays and public holidays.
Time of India
24-07-2025
- Business
- Time of India
Seafood, agriculture companies eye larger market share
The India-UK FTA is poised to significantly benefit India's seafood and agricultural sectors. Duty-free access to the UK market is expected to double seafood exports, offsetting challenges in the US market. Agri commodities will also gain competitiveness, potentially boosting India's agri-exports by 20% and aiding the $100 billion export goal by 2030. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads India's ₹60,000 crore seafood export industry, which has been facing tariff related uncertainties in its largest market in the US, could see duty-free access for Indian marine products to the UK under the FTA and double India's market share there."As the seafood sector faces challenging times due to the ongoing issues regarding the US tariffs, zero duty access to the UK will open a new market for the Indian seafood sector. We can double our existing exports to the UK in one or two years," said Pawan Kumar G, president, Seafood Exporters'Association of the India UK FTA, India will get access to the $5.4 billion UK marine market. The export of shrimp, tuna, fishmeal and feed has become 100% duty free bringing parity to Indian exporters with EU giants like Germany and the Netherlands, and an edge over the Southeast Asian competitors."The new FTA gives Indian seafood entry into the UK for all its products at 0% import duty against previously assessed between 4.5% to 15%. This gives Indian products a huge advantage over similar products from other Southeast Asian competitors like Vietnam, Indonesia and Thailand. We hope to take advantage of the FTA to increase our share of the pie in the UK," said Thomas Jose, director, Choice Group from the USA and China, the EU is the third largest market for Indian seafood exports . "Gujarat is an upcoming and major producer of shrimp after Andhra Pradesh and West Bengal. The duty-free access to the UK market will be a relief for seafood exporters and farmers, currently under duress due to the pressure in the US market," said Jagdish Fofandi, past president, Seafood Exporters Association of India Several agri goods such as fruits, vegetables, cereals, turmeric, pepper, cardamom, and processed goods like ready-to-eat food, mango pulp, pickles and pulses will also get access to the UK markets making Indian products more 95% of agricultural and processed food tariff lines will attract zero duty, a potential 20% boost to boost India's agri exports in the next three years, contributing to India's goal of $100 billion agri-exports by 2030."The trade deal will help Indian farmers earn higher income as well as upgrade to global standards. This will help in opening more trade gates to the developed world," said Sumit Gupta, CEO, WASEDA Global, an agri commodity exporter."The market for imports, so far small, will only grow with the FTA in place. We don't see any major competitive concerns for the mass and mid segments because that's where the majority of the domestic biscuits market is concentrated," said Mayank Shah, VP at biscuits and bakery maker Parle Products.
