Indian Exporters Brace for US Order Cancellations After 25% Trump Tariff

Fast Summary

• US has imposed a 25% tariff on all Indian-origin goods effective August 7,creating concern among indian exporters about potential order cancellations.
• Competitors like Bangladesh, pakistan, Vietnam, and Turkey face lower tariffs (15-20%), giving them a pricing advantage.
• Exporters from textiles, steel, engineering goods, and agriculture sectors have met Commerce Minister Piyush Goyal to request export promotion measures and fiscal support.
• The textile industry fears layoffs due to reduced competitiveness in the price-sensitive US market. The US accounts for one-third of India’s textile exports.
• Concerns were raised about penalties linked to Russian imports that lack clarity. Buyers are hesitant to place orders due to unpredictability in landed costs.
• India’s exports to the US amounted to $87 billion in fiscal year 2025 out of a total $437 billion global export figure.

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!US tariff moves: India may avoid major hit
!Textile discussion screenshot

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Indian Opinion Analysis

The newly imposed 25% tariff by the US on Indian-origin goods presents significant challenges for exporters reliant on American markets. With competitors facing lower tariffs ranging between 15-20%, India’s export sectors may struggle with immediate price disadvantages-a critical issue for products like textiles sold in price-sensitive segments such as T-shirts and home furnishings.

The government’s ongoing discussions with stakeholders from affected industries reflect proactive engagement; however, exporters clearly require tangible support such as interest equalisation schemes or enhanced incentives under existing frameworks like the Rebate of States and Central Taxes and Levies scheme. Additionally, ambiguity around import-related penalties linked with Russia underscores a need for transparency so buyers can make informed decisions confidently.

given that nearly a fifth of India’s total exports rely on the US market ($87 billion annually), this development coudl impact trade volumes substantially unless mitigatory measures are implemented swiftly. Strengthening global competitiveness through technology upgrades or logistical cost reductions-such as highlighted by Piyush Goyal-is highly likely vital not only for immediate relief but also long-term resilience against external trade shocks.