Trump’s Tariffs Bring India’s Export Industry To Its Knees – Factories Struggling To Survive, Workers Losing Their Jobs | World News

Face (gujarat)/mumbai (Maharashtra)/Tamil Nadu: Indian manufacturers, especially in the industries of textile, jewelry and seafood, US President Donald Trump is faced with serious interruptions for threatening to destroy new tariffs. As 50% duties on Indian goods that will enter into force as of August 27, factories supplying to large US retailers such as Walmart, Target and GAP witness canceled orders and production.

Industry leaders are concerned that the impact can last until a critical holiday season and leaving thousands of workers and businesses in danger. Tariffs are part of a wider trade dispute between India and the United States, which has increased in recent months.

Tirupur, Tamil Nadu’s largest textile export center in India, faces a critical situation. According to a BBC report, the showroom shows of new designs collect dust.

India is an important exporter to the United States, especially in textile, shrimp and jewels. Industry experts warn that these high tariffs may harm a prohibition close to Indian products when combined with a 25% penalty for Russian oil imports.

Uncertainty

Tirupur contributes to about one -third of India’s $ 16 billion -dollar ready -to -wear clothing exports. Brands such as Target, Walmart, GAP and Zara rely on products in this region. However, with the tariff announcement, many businesses are now struggling with deep concerns about their future.

N Krishnamurthy, who has a clothing production unit here, shared his concerns. “There may be nothing left to do after September. Our customers canceled all orders.” He said.

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Expansion plans have been stopped recently and about 250 new employees were released while encountering uncertainty.

Trump’s tariffs were introduced in the critical period until the holiday season. This is the main sales time for textile factories. Losses are accumulating. Factories, which are greatly relying on US orders, find themselves looking at an uncertain future, hoping that the domestic market and the upcoming Diwali season will provide some respite.

Another factory that produces underwear has a stock of approximately $ 1 million for US stores. However, buyers are no longer, the owner of Raft Giyim, Shiva Subramaniam leaves a difficult point.

He continued: “We were hoping for a trade agreement between India and the United States, but it never came. Since last month, all our production chain has stopped. If this continues, how will I pay my workers?” he asks.

Trump’s tariffs will increase the price of a $ 10 shirt in India to $ 16.4, while a similar shirt from Bangladesh may cost $ 13.2 and a shirt from China may go to $ 14.2. Even a T -shirt in Vietnam can cost about $ 12.

He’s fighting to set a global market

Although the Indian government has explained measures to resist the effect of import tasks on raw materials, these efforts may be too late. India also negotiated with other countries to explore new markets, but analysts warn that it may be very little, too late.

“American buyers are moving to countries like Mexico, Vietnam and Bangladesh,” Ajay Srivastava of the Global Trade Research Initiative.

Mumbai’s moving diamond export zones, which workers polish and pack the precious stone for transportation, also feel heat. India is a major exporter of jewels and jewels, but even jewelery brands are now tense. September and October are critical months when 3-4 billion dollars of jewels were sent to the United States. However, tariffs threaten this trade and the future of the industry is in danger.

“The effort to establish a basis in the American market can be taken back in just a few months.” He said.

The company exports 90% of the diamond pit jewels to the United States, but even a 10% increase in tariff can be a disaster for its job.

Kotwal, which supplies diamonds from the face of the world’s largest diamond cutting and polishing center, faces a double blow. The industry is already struggling with the growing and increasing competition from the global demands growing in the laboratory. Additional tariffs deepen the crisis only.

The factories in the face work in less than half of their capacity and some work for only 15 days a month. The number of employees has also shrunk to a great extent.

Shailesh Mangukia, the owner of a diamond polishing unit in the face, had to reduce his staff from 300 to 70, while the number of polished diamonds produced fell from 2,000 to only 300 per month.

Shrimp farmers a bond

Meanwhile, Indian Shrimp Farmers, one of the world’s largest exporters, are also fighting. The United States has been a key market for shrimp. Tariffs are over 60%, this sector is under threat. Shrimp exporters are afraid that the price decrease seen after the first tariff announcement will continue.

“This is the most intense time for US customers who are preparing for Christmas and New Year sales. But we are in confusion. We cannot make any decisions,” he said, “This is the most intense time.”

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Incubus scaling production and the results may be severe. If this continues, an estimated 500,000 shrimp farmers and 2.5 million other workers may lose their livelihood.

Trade talks stopped

The trade protrusion between India and the United States is still not resolved and efforts to restart negotiations in Delhi have been canceled. US officials increased their criticism of India, which further complex the situation.

“The future of the Indian-US negotiations depends on the priorities of the Trump administration. The course is open for Indian policy makers: focus on self-confidence and explore new markets.”

While enterprises in textile, jewelry and seafood are struggling to adapt, it is pressure to find new ways for trade and growth. The clock is working and India’s exporters are waiting to see if relaxation will come on time.