Indian garment exporters face Trump’s 50% tariff shock| Oneindia Ground Report

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Indian garment exporters are facing a major tariff shock as the Trump administration imposes a steep 50 percent duty on Indian exports. The move directly impacts garment exporters, shoe manufacturers, and leather industries that heavily rely on the US market. With Indian garment exporters already working on razor-thin margins, this tariff threatens millions of jobs and billions in trade revenues. Competitors like Vietnam and Bangladesh could benefit, while Indian garment exporters brace for losses. The Modi government is expected to step in with relief measures as Indian garment exporters explore new markets and diversification strategies. Oneindia’s Pankaj Mishra explains.    #IndianGarmentExporters #TrumpTariff #IndiaExports #TradeWar #USIndia  ~PR.282~HT.408~ED.110~GR.124~

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00:00A trade storm has just hit India's export economy.

00:03The Trump administration's decision to impose a steep 50% tariff on Indian goods

00:07marks one of the toughest trade sanctions against India in recent years.

00:12This move is expected to send shockwaves across multiple sectors,

00:16particularly garment exporters, shoe manufacturers and allied industries.

00:20India has long been a key supplier of low-cost, high-quality apparel,

00:25footwear, leather goods and textiles to the United States.

00:28In fact, the U.S. accounts for more than a quarter of India's total garment and footwear exports.

00:34With a 50% tariff, IndianX products will suddenly become far more expensive

00:39compared to those from competitors such as Vietnam, Bangladesh and Mexico,

00:44all of whom enjoy either lower tariffs or preferential trade agreements with Washington.

00:49For garment manufacturers, the impact is immediate and severe.

00:53Margins in this industry are razor-thin

00:55and most exporters cannot absorb such a massive tariff high.

00:59But the buyers in the U.S. from retail giants to boutique chains

01:03will likely shift their sourcing to cheaper alternatives.

01:06This threatens not only export revenues but also jobs.

01:09India's textiles and garment sector employs over 45 million people, many of them women.

01:15Shoe manufacturers face a similar crisis.

01:17India is the world's second-largest footwear producer,

01:20but much of its export growth rallies on competitive pricing.

01:24A 50% tariff wipes away that advantage overnight.

01:28American importers who buy Indian leather shoes or sandals

01:32will reconsider their orders, forcing Indian factories to cut production.

01:36Small and medium-sized enterprises,

01:39which form the backbone of India's footwear clusters in Agra, Kanpur and Tamil Nadu,

01:44are particularly vulnerable.

01:46The broader ripple effects are also significant.

01:48India's leather industry, yarn producers and accessory suppliers will see demand slump.

01:54Logistics firms, shipping companies and port operations tied to U.S.-bound exports will be hit as well.

02:01On the macroeconomic level, India risks losing billions in export earnings,

02:06deepening its current account's challenges.

02:08Politically, the tariff escalation signals a strain in India-U.S. trade ties.

02:13While Washington frames this as protecting American workers,

02:17New Delhi views it as protectionism that undermines global supply chains.

02:21Retaliation cannot be ruled out,

02:23and Indian exporters may press the government for relief packages on new incentives to stay afloat.

02:30In the long term, manufacturers will have to diversify markets,

02:33pivoting towards Europe, the Middle East and Africa.

02:37They may also invest in higher value,

02:39differentiated products to avoid competing solely on cost.

02:44But in the short term, this tariff shock is nothing less than a body blow to India's export economy,

02:50threatening livelihoods, competitiveness and hard-won market share in the world's largest consumer economy.

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