Diamonds, apparel, footwear and shrimps face steep US tariff blow

DIAMOND HUBS IN GUJARAT FACE RISK OF MASS LAYOFFS

- OUR CORRESPONDENT

NEW DELHI: The USA's steep 50 per cent tariffs on Indian goods entering America will severely impact exports and job creation in labour-intensive export sectors such as shrimp, apparel, leather and gems and jewellery.

Exporters said that the imposition of a 25 per cent penalty on India over and above the 25 per cent tariffs move will disrupt the flow of Indian goods to its largest export market.

The US accounted for about 20 per cent of India's USD 437.42 billion worth of goods exports in 2024-25. The US is the largest trading partner of India from 2021-22.

In 2024-25, the bilateral trade in goods stood at USD 131.8 billion (USD 86.5 billion exports and USD 45.3 billion imports).

"The 50 per cent tariff is like an economic sanction. It would lead to closure of units and job cuts," an exporter from the leather sector said.

Mithileshwar Thakur, Secretary General, AEPC (Apparel Export Promotion Council), said the textiles sector, with exports of USD 10.3 billion, is one of the worst-impacted sectors.