India’s apparel and jewellery exporters are bracing for a drop in orders from their biggest market and could cut jobs after US President Donald Trump announced a 25% tariff on Indian imports starting today industry executives said.
Several garment exporters, who had hoped for a bilateral trade deal and were preparing for a rise in orders from US retailers such as Walmart and Costco, have now halted expansion plans as they await the outcome of negotiations, they said.
Key garment exporters including Welspun Living, Gokaldas Exports, Indo Count and Trident, make 40%-70% of their sales in the US. Higher tariffs could shift orders to Vietnam, which now has lower US duties of 20%.
The US is India’s largest market for garment and jewellery, with nearly $22bn in exports in 2024. India has a 5.8% share in the US garment market, behind China, Vietnam and Bangladesh.
“We were getting ready for expansion, expecting 10%-15% tariffs under the US deal,” said Gautam Nair, director at Matrix Design and Industries, a subsidiary of India’s largest garment exporter Gokaldas Exports.
Gokaldas US clients include GAP, Walmart and JCPenney.
“Trump’s tariff announcement has come as a shock, and if implemented, the 25% duty will severely impact exports,” Nair said, adding that India’s apparel sector already faces higher costs than leading competitors Bangladesh and Vietnam.
In Tirupur, a textile hub in southern Indian concerns are mounting, with exporters pinning their hopes on a bilateral trade deal to put a quick end to the uncertainty.
The two countries are still holding talks in a bid to reach a deal.
“If US business declines, factories will start poaching each other’s customers,” said Naveen Michael John, executive director at Cotton Blossom India, which supplies Walmart and Bass Pro Shops.
India’s gems and jewellery sector, also heavily reliant on US buyers, is already under pressure. Exports of cut and polished diamonds sank to their lowest in nearly two decades in the 2024-25 fiscal year due to weak US and Chinese demand.
