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25% tariff shock threatens India’s apparel and jewellery exports to U.S., sparks fears of job losses
Several exporters, including Welspun Living, Gokaldas Exports, Indo Count, and Trident, who derive 40% to 70% of their revenue from the U.S., say the tariff could force buyers to shift orders to Vietnam, which enjoys lower U.S. import duties of 20%.
India currently holds a 5.8% share in the U.S. garment market, trailing behind China, Vietnam, and Bangladesh.
India’s top apparel and jewellery exporters are staring down a crisis after U.S. President Donald Trump announced a steep 25% tariff on Indian imports, effective this Friday. As reported by Reuters, the unexpected move has sent shockwaves across the industry, halting expansion plans and threatening mass job cuts as exporters scramble to protect their biggest market.
Several exporters, including Welspun Living, Gokaldas Exports, Indo Count, and Trident, who derive 40% to 70% of their revenue from the U.S., say the tariff could force buyers to shift orders to Vietnam, which enjoys lower U.S. import duties of 20%. India currently holds a 5.8% share in the U.S. garment market, trailing behind China, Vietnam, and Bangladesh.
Reuters reported that Gautam Nair, director at Matrix Design and Industries (a subsidiary of Gokaldas Exports), said, “Trump’s tariff announcement has come as a shock. We were preparing for a 10-15% duty under a possible trade deal — not 25%. This will severely hurt our competitiveness.”
Retail giants like Walmart, GAP, JCPenney, and Bass Pro Shops, key U.S. clients of Indian exporters, could be impacted as cost escalations and supply uncertainties grow. In Tirupur, the country’s knitwear capital, nervousness is mounting.
“If U.S. business declines, factories will start poaching each other’s clients,” warned Naveen Michael John of Cotton Blossom India.
The gems and jewellery sector, already battered by weak global demand, is equally on edge. The U.S. accounts for nearly one-third of India’s $28.5 billion annual exports in this category. With diamond exports at a two-decade low, any additional cost burden could be the final blow.
Exporters are now calling on the Indian government to fast-track a trade resolution with Washington before September, when U.S. holiday orders peak.
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