An article from Business Standard examines the impact of the 50% U.S. tariff on industries in Ludhiana, Punjab. The new tariff, which took effect on August 28, has led to buyers canceling orders, with industry leaders warning of losses over ₹10,000 crore. While some industry leaders express resilience and optimism, stating they have been diversifying into alternative markets, the impact is already being felt on the ground by the local workforce.
Sudarshan Jain, president of the Knitwear and Apparel Manufacturers Association of Ludhiana, said that while the city’s overall exposure to the U.S. market is moderate, the engineering and auto parts sectors, which have a larger dependence on U.S. exports, will be most affected. Harish Dua, founder chairman of KG Exports, said that diversification into markets like the UK has helped, and he believes that even with a 25% tariff, Indian exporters would retain an advantage over competitors like Vietnam and Bangladesh who face higher tariffs. However, S.C. Ralhan, president of the Federation of Indian Export Organisations, cautioned that engineering goods and auto parts are deeply embedded in U.S. supply chains and a full recovery could take up to two years, putting around 200,000 jobs at risk. He has urged the government to provide a ₹20,000 crore support package for exporters.