The new U.S. tariffs will have a significant impact on several of India’s labor-intensive industries, including gems and jewelry, leather and footwear, and shrimp. The diamond polishing industry is projected to see a steep 28-30% fall in revenues for the current fiscal year. Similarly, the leather industry in Tamil Nadu is experiencing a major crisis, with buyers demanding heavy discounts and withholding new orders.
The shrimp industry, which exports to the U.S., is also facing challenges as buyers are bargaining for large discounts and putting new orders on hold. The article notes that Indian exports now face a 50% punitive tariff, which includes a 25% reciprocal tariff and an additional 25% penalty. This tariff is particularly difficult for these industries to absorb due to their already low profit margins.