The new 50% U.S. tariff has created a climate of uncertainty and unease among Indian exporters and workers, especially in low-margin, labor-intensive industries like apparel, textiles, auto parts, and shrimp. A worker in Faridabad, Amit, stated that he expects less work in the coming months, as his unit’s American clients have already canceled orders. SC Ralhan, president of the Federation of Indian Export Organisations (FIEO), warned that roughly 55% of India’s exports to the U.S. are now at a price disadvantage, with some textile and apparel factories already halting production in places like Noida.
The director of San Auto Engineers, Vinod Kawri, said that while the previous 25% reciprocal tariff was manageable, the new 50% levy could push his company out of the American market entirely. Exporters are facing a difficult situation where their U.S. buyers are urging them to absorb the shock, which is unsustainable for them. The article notes that while the government’s stance against coercion is lauded, exporters are calling for immediate support through interest subvention schemes, export credit, and liquidity lifelines.