Exporters risk losing US summer orders as trade talks linger

RACE AGAINST TIME

- SATVIKI SANJAY & SHRUTI SRIVASTAVA

INDIAN EXPORTERS OF products ranging from home decor to leather shoes are worried about missing the US summer shopping season if they are unable to lock in orders in January as trade deal talks drag on between India and the US.

This will be the decisive month for sealing the trade pact so contracts can be secured for the first half of 2026, according to half a dozen exporters. The punitive 50% US tariffs since August already hurt the exporters' order volumes in the typically busy winter and Christmas season in 2025.

One of steepest levies imposed by the Donald Trump administration continue to deal a heavy blow to India's labourintensive sectors, especially textiles,handicrafts,apparels,gems and leather. Despite multiple rounds of talks, including four conversations between Trump and Prime Minister Narendra Modi since August, the slow progress in the trade deal has pressured the rupee and forced New Delhi to dole out $5 billion to protect Indian exporters.

Rafeeque Ahmed, chairman of Farida Group which is one of the largest shoemakers in India, said January 15 is the cutoff date for securing bulk orders from the US to ensure stable revenue for the summer and autumn seasons. The Tamil Nadu-based company derives about 60% of its export revenue from American markets. "I have cut down production by 20-25% and laid off workers," said Ahmed, who supplies to international brands like Cole Haan and Clarks.“How long can we sustain this and keep giving discounts?"

Mixed signals