U.S. Tariffs Threaten India's Apparel and Jewellery Sectors

India's apparel and jewellery exporters are on high alert as a 25% tariff on Indian imports announced by U.S. President Donald Trump threatens their largest market. The industry is considering job cuts, as revealed by industry executives on the ground.

Garment exporters, who anticipated a boost from a potential bilateral trade deal, are finding themselves in a holding pattern. Companies such as Welspun Living and Gokaldas Exports are particularly at risk, as they rely heavily on the U.S. for a significant portion of their sales. The looming tariffs could potentially shift U.S. orders to Vietnam, which benefits from a lower duty rate.

With India's significant export market in jeopardy, industry leaders are strongly urging for a quick bilateral resolution. Such a move would be crucial ahead of the U.S. holiday season, where timely production ramp-up is essential to meet demand. Without a deal, some exporters warn that drastic measures like cutting production and jobs may become inevitable.

(With inputs from agencies.)