The United States has imposed a 50% tariff on Indian goods, severely impacting the textile, leather, and shrimp industries. Factories in places like Surat, Tirupur, and Noida are beginning to shut down. Exporters say that competing with Bangladesh and Vietnam has become extremely difficult, putting millions of jobs at risk.
US Tariffs Impact On Textile Sector: Starting Wednesday at 9:31 AM, a 50% tariff on goods from India went into effect, as ordered by US President Donald Trump. This tariff, imposed on India due to its purchase of cheap oil from Russia, has most significantly affected the textile and leather industries. Several factories in Surat, Tirupur, and Noida have been forced to halt production. The Federation of Indian Export Organizations (FIEO) has warned that rising costs and global competition threaten the livelihoods of millions.
Major Decision by Trump Administration
The US Department of Homeland Security released the draft for the 50 percent tariff on Indian goods on Monday. Since then, the market has been in turmoil. Official implementation began on Wednesday morning. Trump states that this move will increase pressure on Russia and strengthen efforts to stop the war in Ukraine.
PM Modi Emphasizes Self-Reliance
During a public meeting in Ahmedabad, Prime Minister Narendra Modi mentioned the US tariff, stating that India is prepared to withstand any external pressure. He said that he doesn't care if the money is in dollars or pounds. What truly matters is that the labor is Indian and the sweets are also Indian. He assured the public that the interests of farmers, dairy businesses, and small-scale industries would be given the highest priority.
Heavy Blow to the Textile Industry
The US tariff has had the greatest impact on India's textile industry. Several factories in major hubs like Surat, Tirupur, Noida, and Delhi-NCR are on the verge of closure. Businesses are particularly concerned about increased costs in garments and textile manufacturing and reduced competitiveness in the US market.
Seafood Business Also Affected
Not only textiles but also the leather and shrimp businesses have been severely affected by this tariff. The United States has been the largest importer of these products. Now, with the 50 percent tax, Indian goods have become more expensive there. As a result, exporters from countries like Bangladesh and Vietnam are greatly benefiting.
Millions of Jobs at Risk
This tariff is directly impacting employment. Several factories in Surat and Tirupur are facing the prospect of laying off workers. Millions of people work in the textile and leather sectors. When factories close, workers are the first to be affected. According to reports, several units have already halted production.
India Falling Behind in the US Market
The US market has always been a major export hub for India. However, with the 50 percent tariff now in place, Indian goods have become more expensive there compared to Bangladesh and Vietnam. The US has granted tariff exemptions to these two countries. As a result, India's market share is decreasing, and orders are shifting to these countries.
