Indian exporters are in a race against time as looming US tariff hikes threaten to cripple key industries. The stakes are high, with jobs and businesses hanging in the balance after President Donald Trump warned of doubling tariffs from 25 percent to 50 percent if India continues purchasing Russian oil. The clock is ticking, and the August 27 deadline is fast approaching.
Economist Garima Kapoor from Elara Securities put it bluntly: “At 50 percent tariff, no product from India can stand any competitive edge.” This spells disaster for sectors reliant on US exports, which totaled $87 billion last year. From textiles to seafood, low-margin industries are bracing for a severe blow.
The fallout is already visible. The Global Trade Research Initiative predicts a staggering 60 percent drop in US sales for garment exporters this year. Companies like Creative Group, a Mumbai-based textile exporter, are rushing to ship orders before the tariffs kick in. “Whatever we can ship before Aug 27, we are shipping,” said chairman Vijay Kumar Agarwal.
But Agarwal knows this is only a temporary fix. “It doesn’t solve the problem,” he admitted. With 15,000 to 16,000 employees at risk, the future looks uncertain. “It is a very gloomy situation … it will be an immense loss of business,” he added.
The issue extends beyond economics, dipping into geopolitical tensions. As Trump prepares to meet Russian President Vladimir Putin, India finds itself caught in the middle. Prime Minister Narendra Modi has called for peace talks between Russia and Ukraine, but the damage to India’s export economy may already be underway.
Seafood exporters like Baby Marine Group are feeling the pinch. “The United States is totally out right now,” said partner Alex Ninan. Businesses are scrambling to find alternative markets in China, Japan, and even Russia. But pivoting won’t be easy, and the livelihoods of thousands hang in the balance.
The uncertainty is palpable. With fresh orders from US buyers dwindling, the ripple effects could be devastating. Millions in revenue are at stake, and the broader implications for India’s economy remain unclear. For now, exporters wait, hoping for a resolution before time runs out.