The imposition of retaliatory tariffs by the U.S. has created anxiety and uncertainty among both U.S. buyers and Indian suppliers, particularly within MSME clusters like Coimbatore and Tiruppur, which contribute substantially to India’s exports to the U.S. While the subsequent 90-day pause has offered some relief, concerns about price negotiations, new suppliers, and order cancellations persist.
For example, BKS Textiles, which supplies bed spreads and related products, has experienced order declines over the past three months in anticipation of the tariffs. Similarly, KPR Mill has faced uncertainty regarding existing duty variations and requests from buyers to share the additional costs.
Conversely, some exporters, like SNQS International in Tiruppur, have noted a shift of orders from China to India, but with demands for lower prices and faster shipments. Alphacraft, an aluminium foundry, has even gained new orders due to the tariffs on China. However, exporters also express concerns about potential financial market disturbances, a slowdown in U.S. demand, and increased import of Chinese goods into India.