Latest news with #garments
CNA
6 days ago
- Business
- CNA
India reels from US tariff hike threat
That 50 per cent levy now threatens to upend low-margin, labour-intensive industries ranging from gems and jewellery to textiles and seafood. The Global Trade Research Initiative estimates a potential 60 per cent drop in US sales in 2025 in sectors such as garments. Exporters say they are racing to fulfil orders before the deadline. "Whatever we can ship before Aug 27, we are shipping," said Vijay Kumar Agarwal, chairman of Creative Group. The Mumbai-based textile and garment exporter has a nearly 80 per cent exposure to the US market. But Agarwal warned that it is merely triage. Shipping goods before the deadline "doesn't solve" the problem, he said. "If it doesn't get resolved, there will be chaos," he said, adding that he's worried for the future of his 15,000 to 16,000 employees. SHIFTING PRODUCTION ABROAD Talks to resolve the matter hinge on geopolitics, far from the reach of business. Trump is set to meet Vladimir Putin on Friday (Aug 15), the first face-to-face meeting between the two countries' presidents since Russia launched its full-scale invasion of Ukraine in February 2022. New Delhi, with longstanding ties with Moscow, is in a delicate situation. Since Trump's tariff threats, Prime Minister Narendra Modi has spoken to both Putin and Ukrainian President Volodymyr Zelenskyy, urging a "peaceful resolution" to the conflict. Meanwhile, the US tariff impact is already being felt in India. Businesses say fresh orders from some US buyers have begun drying up - threatening millions of dollars in future business and the livelihoods of hundreds of thousands in the world's fifth biggest economy. Among India's biggest apparel makers with global manufacturing operations, some are looking to move their US orders elsewhere. Top exporter Pearl Global Industries has told Indian media that some of its US customers asked that orders be produced in lower-duty countries such as Vietnam or Bangladesh, where the company also has manufacturing facilities. Major apparel maker Gokaldas Exports told Bloomberg it may boost production in Ethiopia and Kenya, which have a 10 per cent tariff. "STANDSTILL" Moody's recently warned that for India, the "much wider tariff gap" may "even reverse some of the gains made in recent years in attracting related investments". India's gems and jewellery industry exported goods worth more than US$10 billion last year and employs hundreds of thousands of people. "Nothing is happening now, everything is at a standstill, new orders have been put on hold," Ajesh Mehta from D Navinchandra Exports told AFP. "We expect up to 150,000 to 200,000 workers to be impacted." Gems and other expensive non-essential items are vulnerable. "A 10 per cent tariff was absorbable - 25 per cent is not, let alone this 50 per cent," Mehta added. "At the end of the day, we deal in luxury products. When the cost goes up beyond a point, customers will cut back." Seafood exporters, who have been told by some US buyers to hold shipments, are hoping for new customers. "We are looking to diversify our markets," says Alex Ninan, who is a partner at the Baby Marine Group. "The United States is totally out right now. We will have to push our products to alternative markets, such as China, Japan ... Russia is another market we are really looking into." Ninan, however, warns that is far from simple.
Arab News
06-08-2025
- Business
- Arab News
Egypt's exports increase 4.6% in May to $4.25bn
RIYADH: Egypt's exports rose by 4.6 percent year-on-year in May to reach $4.25 billion, supported by a significant uptick in petroleum products and ready-made garments. The latest monthly bulletin released by the Central Agency for Public Mobilization and Statistics showed that petroleum product exports rose by 53.5 percent, while overseas sales of ready-made garments climbed by 32.8 percent. Egypt saw export growth in pasta and various food preparations, up by 21.7 percent, along with raw forms of plastics, which increased by 5.7 percent. Egypt's latest trade figures come amid currency pressures, inflation, and shifting global demand, with policymakers focusing on boosting exports and curbing non-essential imports to stabilize reserves and improve the balance of payments. The North African nation's trade performance reflects broader trends in global commerce as regional economies, including Egypt, work to diversify export markets and enhance manufacturing competitiveness. Egypt's trade deficit narrowed to $3.41 billion in May, down from $4.15 billion in the same month of 2024, according to CAPMAS. In parallel, imports fell by 6.7 percent to $7.66 billion, compared to $8.21 billion in the previous year, driven by lower purchases across several categories. Sector highlights While fertilizer exports declined by 48 percent, and fresh fruit exports dropped by 4 percent, other categories also saw downturns. These included fresh onions, which fell by 3.2 percent, and non-crude petroleum oils, which recorded a 48.3 percent drop. On the import side, Egypt reduced its purchases of petroleum products by 34 percent, raw materials of iron or steel by 20.3 percent, primary plastics by 15.9 percent, and iron or steel chemical materials by 18.9 percent. Despite the overall decline in imports, the report highlighted notable increases in some sectors. Natural gas imports surged by 93 percent, while pharmaceutical preparations rose by 19.1 percent. Imports of wood and related products climbed by 17.7 percent, and passenger cars increased by 14.5 percent. The trade developments come as Egypt continues to implement policies aimed at boosting industrial output and optimizing its trade balance through import substitution and export expansion.
Bloomberg
16-07-2025
- Business
- Bloomberg
Indonesia Says US Tariff ‘Huge Win' for Labor-Intensive Sectors
Indonesia sees securing a 19% tariff rate with the US as a 'huge win' for some of the Southeast Asian nation's most labor-intensive sectors such as garments and footwear, a government adviser said Wednesday. 'It opens up opportunity for Indonesia to get additional market into the US,' Heriyanto Irawan, a member of Indonesia's National Economic Council (DEN), said in an interview on Bloomberg TV.
Yahoo
10-07-2025
- Business
- Yahoo
Sri Lanka's apparel industry alarmed by US tariff of 30%, hopes for cut
By Uditha Jayasinghe COLOMBO (Reuters) -Distress is in store for Sri Lanka's garments sector if the island nation is unable to clinch a tariff lower than the 30% figure U.S. President Donald Trump has clamped on imports from Colombo, a top industry body warned on Thursday. The United States takes about 40% of apparel exports, helping to pull in $1.9 billion last year and make the industry Sri Lanka's third largest earner of foreign exchange, employing 300,000 people, most of them women. "If this is the end number, Sri Lanka is in trouble because our competitors, such as Vietnam, have received lower tariffs," Yohan Lawrence, of the Joint Apparel Associations Forum (JAAF) representing the largest apparel companies, told Reuters. "But we are hopeful we can continue discussions." In a letter on Wednesday, Trump notified President Anura Kumara Dissanayake of the 30% tariff from August 1, a rate well above the 20% levy faced by competitor Vietnam. The U.S. tariff on neighbouring Bangladesh, another major South Asian garment exporter, was set at 35%, though the levy on India, also a big U.S. supplier, has not yet been unveiled. The Sri Lankan government did not immediately respond to a request for comment but called a news briefing later in the day, to be attended by central bank governor Nanadalal Weerasinghe as well as trade and finance officials. Sri Lanka's apparel exports to the United States in the first five months of 2025 stood at $747 million, while its total apparel exports last year were worth $4.8 billion, JAAF data shows. Last week, the International Monetary Fund (IMF) said Sri Lanka's economic outlook remains positive, despite significant risks to macroeconomic and social stability from global trade policy uncertainties. When he initially unveiled his tariffs on April 2, Trump had threatened a levy of 44% on about $3 billion of the Indian Ocean nation's exports. Sign in to access your portfolio
Yahoo
10-07-2025
- Business
- Yahoo
Sri Lanka's apparel industry alarmed by US tariff of 30%, hopes for cut
By Uditha Jayasinghe COLOMBO (Reuters) -Distress is in store for Sri Lanka's garments sector if the island nation is unable to clinch a tariff lower than the 30% figure U.S. President Donald Trump has clamped on imports from Colombo, a top industry body warned on Thursday. The United States takes about 40% of apparel exports, helping to pull in $1.9 billion last year and make the industry Sri Lanka's third largest earner of foreign exchange, employing 300,000 people, most of them women. "If this is the end number, Sri Lanka is in trouble because our competitors, such as Vietnam, have received lower tariffs," Yohan Lawrence, of the Joint Apparel Associations Forum (JAAF) representing the largest apparel companies, told Reuters. "But we are hopeful we can continue discussions." In a letter on Wednesday, Trump notified President Anura Kumara Dissanayake of the 30% tariff from August 1, a rate well above the 20% levy faced by competitor Vietnam. The U.S. tariff on neighbouring Bangladesh, another major South Asian garment exporter, was set at 35%, though the levy on India, also a big U.S. supplier, has not yet been unveiled. The Sri Lankan government did not immediately respond to a request for comment but called a news briefing later in the day, to be attended by central bank governor Nanadalal Weerasinghe as well as trade and finance officials. Sri Lanka's apparel exports to the United States in the first five months of 2025 stood at $747 million, while its total apparel exports last year were worth $4.8 billion, JAAF data shows. Last week, the International Monetary Fund (IMF) said Sri Lanka's economic outlook remains positive, despite significant risks to macroeconomic and social stability from global trade policy uncertainties. When he initially unveiled his tariffs on April 2, Trump had threatened a levy of 44% on about $3 billion of the Indian Ocean nation's exports. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
