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US Tariffs Hit Indian Exports: Textiles, Gems & Leather Suffer

 

Visual depiction of Indian export industries hit by US tariffs, including textile workers and artisans in leather and gem sectors, showing economic downturn.
Indian Exporters Grapple with 50% US Tariffs in Labour-Intensive Sectors Like Textiles, Leather, and Jewellery – September Data Reveals Sharp Decline(Representing AI image)

When the Thread Snaps: How US Tariffs Are Strangling India’s Textiles, Leather, Gems & Jewellery Exports 

- Dr.Sanjaykumar pawar


Table of Contents

  1. Introduction: Setting the Scene
  2. What Exactly Happened? The Tariff Shock Explained
  3. The Export Landscape: India’s Key Labour‑Intensive Sectors
  4. Data & Analytics: What the Numbers Reveal
  5. Sector‑Wise Deep Dive
    1. Textiles & Apparel
    2. Leather & Footwear
    3. Gems & Jewellery
    4. Electronics & Other Outliers
  6. Impact on Jobs, Industry Clusters and MSMEs
  7. Strategic Responses: What India Can Do (and Is Doing)
  8. Conclusion: Lessons & Outlook
  9. FAQs
  10. Sources 
  11. Visuals to clarify

1. Introduction: Setting the Scene

In August 2025, a dramatic shift reshaped India–US trade relations. Reacting to India’s sustained imports of Russian oil despite ongoing geopolitical tensions, the United States slapped a new wave of tariffs on a broad array of Indian exports — with some duties soaring as high as 50%.

This move has already begun to ripple through India’s export economy. Labour-intensive sectors like textiles, leather, and gems & jewellery, which rely heavily on the US market, are now facing a sharp downturn. Export data from September 2025 paints a stark picture: shipments are down, order books are shrinking, and many small and mid-sized exporters are in crisis mode.

What began as a policy response now threatens to become a long-term structural challenge for India’s export-led growth, especially in industries that provide mass employment and support millions of livelihoods. As competitiveness erodes under the weight of punitive tariffs, the question isn't just about recovering lost trade — it's about rethinking strategy.

This blog dives deep into the story behind the tariffs. We’ll explore why the US imposed them, how they’re affecting key Indian sectors, and what this means for India’s future trade strategy. Backed by the latest data and insights from government reports, industry bodies, and global think tanks, this analysis offers more than just news — it provides context, clarity, and potential solutions.

If you're a policymaker, exporter, analyst, or simply someone trying to make sense of this fast-changing trade landscape, this is your starting point. Let’s unpack what’s really happening — and what needs to happen next.


2. What Exactly Happened? The Tariff Shock Explained

The trade dynamic between India and the United States underwent a dramatic transformation in August 2025, catching many exporters off guard. The shift was sudden, sweeping, and had deep-rooted geopolitical motivations — but its impact is being felt most sharply on the ground by Indian exporters struggling to stay competitive.

The Timeline: From Policy to Penalty

  • On 7 August 2025, the United States imposed an additional 25% tariff on a specific range of Indian exports. This wasn’t a routine trade measure — it was a targeted move, tied directly to India’s ongoing purchase of discounted Russian crude oil, despite US-led efforts to isolate Russia economically.

  • Then, from 27 August 2025, the situation escalated. Several categories of Indian goods began facing a total tariff of 50% in the US market — a significant jump from previous levels that hovered between 5–20% for most items.

  • According to a detailed assessment by the Global Trade Research Initiative (GTRI), this new tariff regime affects nearly 66% of all Indian exports to the US — roughly $60 billion worth of goods annually. That’s not a marginal impact — it’s a shockwave.

Who's Hit the Hardest?

The sectors bearing the brunt of these tariffs are labour-intensive industries that form the backbone of India's export economy:

  • Textiles and Apparel
  • Gems and Jewellery
  • Leather and Footwear
  • Shrimp and Seafood

These sectors aren’t just vital to India's trade balance — they employ millions of workers, particularly in small and medium-sized enterprises (SMEs). With tight profit margins and a heavy reliance on US buyers, these industries are now confronting a steep decline in orders and pricing power.

Why Was This Tariff Hike Imposed?

Unlike traditional trade disputes over subsidies or market access, this tariff spike has a geopolitical trigger. The US has consistently urged countries to reduce or halt imports of Russian oil in light of sanctions imposed after the Ukraine conflict. India, citing energy security and price advantages, continued purchasing Russian crude, often at discounted rates.

This has irked Washington — and while countries like China and Turkey also buy Russian oil, India was singled out in this case, likely due to the perceived optics of balancing strategic partnerships. For the US, the tariff serves as a pressure tool to force India’s hand — using trade as leverage in a broader diplomatic game.

Why Are the Tariffs So Severe?

The 50% duty is more than just symbolic — it’s commercially devastating. Here’s why:

  • Market concentration: A large share of exports from affected sectors goes to the US, making them highly vulnerable to any tariff hikes.

  • Narrow margins: Industries like textiles and seafood operate on slim profit margins. A sudden cost increase of this magnitude cannot simply be absorbed or passed on to buyers.

  • Global competition: Countries like Bangladesh, Vietnam, and Turkey export similar products to the US — but without these punitive tariffs. This places Indian exporters at a 30–35% competitive disadvantage, virtually pricing them out of the market.

  • Supply chain disruption: With the sudden fall in US-bound orders, manufacturers are struggling with overcapacity, delayed payments, and cancelled contracts — all of which ripple down to workers and local economies.


In sum, this isn’t just a temporary trade scuffle — it’s a systemic shock that exposes vulnerabilities in India's export model. The severity of the US tariffs, and the geopolitical context behind them, makes it clear: this is not just about trade flows, but about strategic positioning in a multipolar world. And for Indian exporters, the challenge ahead is no longer just about surviving — it’s about adapting to a fundamentally altered global trade landscape.


3. The Export Landscape: India’s Key Labour‑Intensive Sectors

India’s export story has long been underpinned by its labour-intensive manufacturing sectors — especially textiles, apparel, leather goods, and gems & jewellery. These industries have thrived on India’s low-cost workforce, deep-rooted MSME networks, and active participation in global value chains. For decades, this model has not only driven export growth but also created millions of jobs and supported regional economies across the country.

With a wide geographical spread — from the garment hub of Tiruppur in Tamil Nadu to the diamond-cutting workshops of Surat in Gujarat — these sectors have helped bridge the urban-rural divide and deliver more inclusive economic growth. However, the newly imposed US tariffs have disrupted this delicate ecosystem.

Why This Matters

The importance of these sectors goes far beyond trade volumes. They form the employment backbone of India’s manufacturing economy:

  • Textiles and apparel alone employ over 45 million people, most of them in rural or semi-urban areas.
  • Gems & jewellery contribute around 7% to India’s GDP and are one of the largest sources of foreign exchange.
  • Over 70% of firms in these sectors are MSMEs, making them agile but also highly vulnerable to external shocks like sudden tariffs.

The United States is a critical market. In FY2024, India’s apparel exports to the US stood at around $10.3 billion, while gems & jewellery exports crossed $8 billion. For many firms, especially smaller ones, the US isn't just a market — it’s the primary driver of revenues.

Thus, the new US tariff regime — with duties rising up to 50% on select items — poses a significant risk to both export earnings and employment in these sectors. It strikes where it hurts the most: labour-intensive MSMEs with little cushion to absorb shocks.

Pre‑Tariff Posture

Before the tariff escalation in August 2025, India’s labour-intensive export sectors were already operating under stress. Growth had slowed compared to the post-COVID recovery period, and many structural issues remained unresolved.

Key challenges already impacting these sectors included:

  • Rising input costs, especially raw materials like cotton, leather, and gold, were squeezing profit margins.
  • Global supply chain disruptions, partly due to geopolitical tensions and lingering effects of the pandemic, continued to create delivery delays and cost overruns.
  • Intensifying competition from lower-cost producers such as Bangladesh, Vietnam, and Ethiopia was eroding India’s edge in global markets.
  • Labour constraints, especially in high-skill segments like embroidery, diamond cutting, and design, created production bottlenecks.

This meant that by mid-2025, many MSMEs were already operating on thin margins and managing short-term uncertainties. The tariff hike by the US — India’s largest single-country export destination — has therefore landed at a time of underlying vulnerability.

The result is not just a dip in exports — early data for September 2025 shows a 17% year-on-year fall in textile exports to the US — but also growing concern among exporters about future viability.

In a sector where contracts are often locked in months in advance, the sudden spike in duties has rendered many Indian products uncompetitive overnight, forcing buyers to look elsewhere.

As we explore further, the next sections of this blog will analyze how these tariffs came about, sector-by-sector impacts, and what policy options India has to navigate this disruption. What’s clear already is that for India’s labour-intensive exporters, this is more than a temporary setback — it’s a wake-up call for strategic recalibration.


4. Data & Analytics: What the Numbers Reveal

The numbers from September 2025 are starting to paint a clearer — and more concerning — picture of the impact of the US tariff escalation on Indian exports. While the headline merchandise export figure suggests some resilience, a deeper look reveals sector-specific shocks and a shifting trade landscape that could have lasting implications.

Key Metrics and Export Trends

According to IndiaSeatradeNews, citing data from the Global Trade Research Initiative (GTRI), some of India’s most labour-intensive sectors have taken a direct hit:

  • Ready-made garments saw a 10.1% year-on-year decline in exports.
  • Cotton yarn and fabrics exports fell 11.7%, a sharp drop in a category long seen as a strong performer.
  • Gems and jewellery, typically one of India’s star export sectors, saw growth nearly flatline at just 0.4%.

More broadly, exports to the United States fell by 12% in September, as the steep tariffs — some reaching up to 50% — took their toll. In contrast, India’s exports to China and the UAE jumped 34% and 24%, respectively. This suggests that Indian exporters are already pivoting to new markets in response to the changing US trade stance.

Perhaps most notably, the share of Indian exports going to the US has dropped significantly. From about 20% of total exports during April to August, the US share declined to 15% in September — a clear sign that the world's largest consumer market is no longer playing the same role in India's export strategy.

On a macro level, India’s total merchandise exports did rise by 6.7% in September to US $36.38 billion, indicating some resilience. However, this silver lining is overshadowed by a growing challenge: the trade deficit widened to a 13-month high of US $32.15 billion, driven largely by rising imports.


Interpretation: What These Numbers Mean

The story behind the numbers is nuanced. Here are the key takeaways:

  1. Tariff-Sensitive Sectors Are Hurting Most
    The worst declines are concentrated in sectors that are highly dependent on the US and most exposed to tariff hikes. Ready-made garments, textiles, and gems & jewellery are all labour-intensive industries with slim margins. A 50% tariff makes Indian products instantly uncompetitive in the US market — especially when buyers can turn to low-cost producers in Bangladesh, Vietnam, or Mexico.

  2. Market Diversification Is Underway — But Not Without Costs
    The rise in exports to China and the UAE shows Indian exporters are actively seeking alternative markets. However, market reorientation comes with frictions: new buyer relationships, logistics adjustments, and pricing negotiations take time. While diversification is good in the long run, the immediate impact is uncertainty and loss of volume in traditional markets like the US.

  3. Losing the US Market Means Losing Long-Term Value
    The drop in the US’s share of India’s export basket is not just about numbers — it signals a potential loss of long-term customer relationships and pricing power. The US has historically been a premium market for Indian exporters. Shrinking presence there could gradually erode brand equity and bargaining strength, forcing Indian firms into more commoditized, lower-margin markets.

  4. Trade Deficit Pressure Adds Urgency
    While exports have held up modestly, rising imports — possibly due to energy, electronics, and capital goods — are pushing the trade deficit higher. This adds fiscal pressure and underscores the need for a competitive, sustainable export base. Without addressing the tariff hit in key sectors, India risks further imbalance in its trade position.

The September data is a wake-up call. The early impact of the US tariffs is real, sector-specific, and potentially long-lasting. While India’s exporters are proving adaptive, the loss of the US market share, coupled with a growing trade deficit, highlights the need for targeted policy support, sector-specific interventions, and strategic trade realignment.

In the next section, we’ll explore how the most affected industries are responding — and what they need to stay competitive in a rapidly shifting global trade environment.


5. Sector‑Wise Deep Dive

The fallout from the August 2025 US tariff hike is neither uniform nor isolated — it hits certain sectors harder due to their reliance on price-sensitive exports and heavy dependence on the US market. This section takes a sector-by-sector look at how the increased duties (up to 50%) are impacting India’s export economy, why these shifts are happening, and what they could mean for long-term competitiveness.


5.1 Textiles & Apparel

No sector has felt the sting of the US tariffs more acutely than textiles and apparel. Long seen as a mainstay of India’s export economy, this sector is now under immense pressure. Even before the tariff revision, the data pointed to worrying trends: exports of non-knitted apparel to the US were down 22.2%, and cotton dresses had plunged 66.7%.

With the tariff rate now at 50%, India’s garments are at a cost disadvantage of 30–31% compared to key competitors like Bangladesh and Vietnam, both of which enjoy preferential or lower tariff access to the US market. This is particularly damaging for export hubs like Tiruppur, which contributes nearly 30% of India’s ready-made garment exports.

Why the big hit?

  • Apparel is a low-margin, price-sensitive industry. US retail chains operate on tight cost structures, and most Indian exporters supply under wafer-thin margins.
  • The steep tariffs wipe out profitability and make Indian exports unaffordable for many buyers.
  • Competing countries are able to undercut Indian pricing and capture market share rapidly.

Implications

  • Early signs include order cancellations, inventory pile-ups, and forced discounts by US buyers.
  • India’s long-term market share in the US may be permanently eroded, especially in value fashion.
  • A domino effect is visible — exports of cotton yarn and fabric also fell by 11.7% in September, indicating upstream distress.

5.2 Leather & Footwear

Often overshadowed by textiles, India’s leather and footwear industry is another major casualty of the tariff regime. Exporters in this segment are now burdened with a 50% tariff wall, making it difficult to compete globally — especially in the high-demand US market.

The sector is largely powered by MSMEs, especially in clusters like Kanpur and Agra, where small-scale exporters dominate. These businesses often operate on thin working capital, limited technological capacity, and small production volumes — leaving them less resilient to external shocks.

Implications

  • Exporters are reporting order deferrals and cancellations, with some US buyers shifting sourcing to Vietnam or Indonesia.
  • The pressure is spreading upstream: tanning, finishing, and component manufacturing units are witnessing reduced activity.
  • Job losses may follow, as smaller units downsize or shut shop entirely.

5.3 Gems & Jewellery

India’s gems and jewellery sector, known for its global competitiveness in diamond cutting, polishing, and gold jewellery, is now facing one of its biggest threats in years. The US, which traditionally absorbs 30–40% of India’s gem and jewellery exports, has increased tariffs to around 52.1% — devastating for a sector already navigating tight margins.

In September 2025, export growth in this segment dropped to a meagre 0.4%, underlining the pressure.

What’s going on?

  • The US consumer market is sensitive to price volatility. With tariffs pushing final prices higher, retailers are opting for more cost-effective sourcing destinations.
  • Countries like Thailand, Turkey, and Vietnam are stepping in, aided by more favourable trade terms.
  • Indian exporters can’t simply absorb the cost — most are small workshops and artisans, particularly in hubs like Surat, where diamond processing is labour-intensive and highly competitive.

Implications

  • Artisan employment is under threat, especially in smaller units that depend almost entirely on US orders.
  • A drop in demand for cut and polished diamonds could slow the entire value chain — from raw diamond imports to final setting and export.
  • Without policy support or alternate markets, India risks losing its global edge in this highly specialised industry.

5.4 Electronics & Other Outliers

Amid the downturn, one surprising bright spot has emerged: electronics, particularly smartphones, registered a 50.5% export growth in September 2025.

Why the difference?

  • Much of this growth is likely not US-bound, insulating it from the latest tariff blows.
  • Production-Linked Incentive (PLI) schemes have boosted domestic manufacturing and exports, allowing Indian electronics makers to diversify markets and improve competitiveness.
  • Electronics exports are also less price-sensitive, with buyers prioritising quality, technology, and brand — not just cost.

This sector’s relative resilience highlights a key point: the impact of US tariffs is sector-specific. Where exposure to the US is high and cost margins are low — like in textiles or gems — the pain is sharp. But where exports are more diversified and bolstered by policy support, growth is still possible.


Final Thoughts

The US tariff escalation is not just a short-term bump; it may force a strategic rethink of India’s export model. Labour-intensive, price-sensitive sectors that thrived under older trade conditions are now facing existential questions.

To regain competitiveness, India must explore trade diversification, FTA negotiations, and domestic productivity improvements. Policy support, particularly for MSMEs in vulnerable clusters, will be critical.

As global trade realigns in a more fragmented and politicised landscape, India’s exporters will need agility, innovation, and government backing to thrive in this new era.


6. Impact on Jobs, Industry Clusters and MSMEs 

The sudden escalation in US tariffs on Indian exports in August 2025 is not just a diplomatic flashpoint — it’s a direct hit to India’s economic backbone: its labour-intensive export sectors and the millions of jobs they support. While trade numbers may show percentage drops, the human cost behind those figures is already being felt — in closed factories, silent machines, and rising uncertainty in key industrial hubs.

Employment Risk

One of the most immediate and devastating effects is on employment. Industry experts estimate that between 200,000 to 300,000 jobs are now directly at risk in just two sectors: textiles and gems & jewellery. These are not just numbers — they represent tailors, weavers, artisans, polishers, and countless others whose livelihoods hinge on continued demand from the US market.

The structure of these industries makes them especially vulnerable. MSMEs (Micro, Small, and Medium Enterprises) dominate these sectors, and these businesses often operate on thin margins, tight cash flows, and limited access to credit. A sudden increase in tariffs can wipe out profitability overnight. For a micro-enterprise, even a short disruption in export orders can mean layoffs, halted production, or total shutdown.

Industrial Clusters Under Stress

The damage is visible on the ground. In Tiruppur, Tamil Nadu — India’s knitwear capital — garment manufacturers report a 25% drop in production since the tariffs took effect. Several small factories have already shut down, while others are running reduced shifts. Thousands of workers, many of whom are migrant labourers, are being laid off or sent home without clarity on when (or if) they’ll be called back.

In Surat, Gujarat — which handles over 80% of India’s diamond exports — the situation is similarly grim. The gems and jewellery sector, particularly diamond polishing and trading, has seen export orders plummet. Workshops are scaling back operations, and the entire supply chain — from rough diamond importers to polishing units — is under severe strain. The fear is that sustained pressure could hollow out the sector’s international competitiveness, especially if buyers shift to alternative suppliers in countries like Thailand or Vietnam.

Wider Ripple Effects

The impact isn’t confined to just export figures or direct jobs — the ripple effects are spreading fast. For one, domestic suppliers to these industries are now feeling the pinch. For example, yarn and fabric producers who supply garment exporters, or leather tanneries linked to shoe and accessory manufacturers, are seeing a drop in orders.

Additionally, regional economies that rely on these clusters are under pressure. In cities like Tiruppur and Surat, a slowdown in one sector affects transporters, packaging firms, food vendors, and even housing rentals for migrant workers.

There’s also a strategic concern: the loss of market share in the US — one of India’s largest and most lucrative export destinations — could prompt global buyers to re-evaluate their sourcing strategies. Once market confidence is lost, it can be very hard to win back. Companies looking to diversify supply chains may now favour competitors in Bangladesh, Vietnam, or Mexico — countries unaffected by the US tariff regime.

This unfolding crisis underlines how deeply intertwined exports, employment, and local economies are in India. The US tariffs aren’t just about geopolitics; they’re about the livelihoods of millions and the resilience of India’s MSME sector. For policymakers, this is a wake-up call: protective buffers, support schemes, and long-term competitiveness strategies are urgently needed to shield India’s export clusters from future shocks.


7. Strategic Responses: What India Can Do (and Is Doing) 

In the wake of the United States imposing steep tariffs on Indian exports, especially hitting sectors like textiles, leather, and gems & jewellery, India’s response strategy is both critical and multifaceted. The challenge is clear: how can India safeguard its labour-intensive export model while adapting to evolving global trade dynamics? Here’s a closer look at the immediate actions and long-term plans shaping India’s strategic response.

Immediate Mitigation

The Indian government’s initial approach is cautious but pragmatic. Instead of rushing into emergency bailouts, officials are committed to assessing the full impact of the tariff hikes on exporters. This careful evaluation helps avoid hasty decisions that might not address underlying issues.

At the same time, credible reports indicate that a relief package is in the works, particularly aimed at micro, small, and medium enterprises (MSMEs) that form the backbone of India’s export economy. This package is expected to include credit guarantees and export-liquidity support to help businesses maintain cash flow and stay afloat during this turbulent period. By targeting financial assistance to those most vulnerable, India aims to cushion the immediate blow without encouraging dependency.

Market Diversification

One of the most effective ways to reduce risk from a single market shock is diversification, and Indian exporters are already pivoting to alternative markets. Data from September 2025 shows promising growth in shipments to countries like China (+34%) and the UAE (+24%). These markets offer new opportunities for Indian exporters to rebuild lost momentum.

Moreover, ongoing trade negotiations are a bright spot. The prospective India–UK Free Trade Agreement (FTA), for example, holds significant promise for sectors such as apparel, textiles, and gems & jewellery. By securing preferential access in new regions, Indian exporters can gradually offset losses from US tariffs, creating a more balanced export portfolio.

Competitiveness Enhancement

To remain resilient in a volatile global trade environment, Indian exporters must enhance their competitiveness beyond simply relying on low costs. One key area is reducing input costs. Discussions around relaxing import duties on raw materials, particularly from China and other major suppliers, are gaining traction to help producers cut expenses.

Beyond cost, there’s a strategic push towards upgrading technology and moving up the value chain. This means focusing on product quality, innovation, and differentiation rather than competing purely on price. Building stronger brand value, design capabilities, and integrated supply chains can reduce vulnerability to tariff shocks by offering unique products that justify premium pricing.

Policy & Structural Reforms

Long-term resilience requires systemic reforms across the export ecosystem. Improving logistic efficiency is a priority, as smoother transportation and reduced delays can significantly lower costs. Additionally, addressing domestic cost factors like power, labour, and compliance burdens will improve overall export competitiveness.

Supporting MSMEs remains central to this strategy. The government plans to provide easier access to credit, enhanced export incentives, and tools for risk mitigation, helping smaller exporters navigate international market challenges.

Finally, accelerating initiatives like ‘Make in India’ and Production-Linked Incentive (PLI) schemes aims to pivot India towards higher-end manufacturing. This shift will gradually reduce the economy’s reliance on commodity-style, labour-intensive exports, making India’s trade portfolio more robust and diversified.


In summary, India’s response to the US tariffs is a well-rounded mix of immediate relief measures, market diversification, competitiveness improvements, and long-term structural reforms. While challenges persist, this multi-pronged strategy reflects a clear understanding: to thrive in today’s complex global trade environment, India must innovate, diversify, and modernize its export framework. Keeping a close eye on implementation and continuously adapting will be crucial to protecting the livelihoods of millions dependent on India’s export industries.


8. Conclusion: Lessons & Outlook

The US’s tariff escalation is more than a temporary blip: it represents a structural challenge for India’s labour‑intensive export sectors. The bluntness of a 50 per cent tariff has exposed vulnerabilities: high US‑dependence, slim margins, intense international competition, and limited buffer capacity in MSMEs.

However, this crisis also offers an inflection point: a chance to rethink export strategy, diversify markets, upgrade competitiveness, and reduce risk of over‑reliance on a single large market.

Key takeaways:

  • The export downturn in September is clear and data‑strong; labour‑intensive sectors are bearing the brunt.
  • Companies and policymakers must act rapidly — the longer market share is lost, the harder it is to regain.
  • For India, the imperative is to build resilience: diversify markets, move up value chains, foster higher‑skill manufacturing, support the vulnerable MSME base.
  • While electronics and other sectors have shown resilience, India cannot treat the core hard‑hit sectors as less important — they are major employers and drivers of inclusive growth.
  • The coming 12 to 24 months will be critical: whether India stabilises its export base, mitigates job loss, and adapts to the new trade environment, or risks longer‑term damage.

9. FAQs

Q1. Are all Indian exports to the US subject to the 50% tariff?
No. According to reports, about 30% of exports are duty‑free and about 4% face a 25% tariff. The 50% rate applies to the approximately two‑thirds of exports deemed most exposed (apparel, textiles, gems & jewellery, shrimp, etc.).

Q2. Did the tariff hike take effect immediately for all products?
The additional duty of 25% was announced on 7 August and the full 50% regime came into effect on 27 August 2025 (for many product categories).

Q3. Which sectors are least affected by the tariffs?
Sectors exporting services (IT/BPO), or those not heavily dependent on the US goods market, are less affected. Also, electronics (which have seen growth) suggest that not all sectors are equally hit.

Q4. What are the estimated job losses?
Some industry estimates foresee 200,000 – 300,000 jobs at immediate risk in the textiles and gems & jewellery sectors alone.

Q5. What can exporters do to mitigate the impact?
Exporters can: (i) diversify markets away from the US; (ii) shift towards higher value‑add/quality exports; (iii) manage cost structures aggressively; (iv) engage with government for export incentives and liquidity support.


10. Sources

  • “Textiles, gems & jewellery, leather goods among key sectors hit hard by 50 % US tariff” — NDTV.
  • “MSMEs in textiles, diamonds, chemicals to be most hit by US tariffs” — CRISIL Intelligence.
  • “US’s 50 pc tariffs on Indian goods kick in to impact shrimp apparel diamonds footwear exports” — The Week.
  • “How India’s export sectors are getting impacted by 50 per cent US tariff” — The New Indian Express.
  • “India’s merchandise exports to the US crashed more than 22 % from May to August” — Livemint.
  • “US tariffs hit September exports of textiles, leather, and jewellery” — India Seatrade News.
  • Additional news reports: ToI, Economic Times.

11. visual to clarify-   


Open this link 🔗 for visuals 👇 

https://bizinsighthubiq.blogspot.com/2025/10/impact-of-us-tariffs-on-indian-exports.html

1. Bar chart – Sector-wise export decline (September 2025 YoY)

2. Pie chart – Change in export destination share (April–August vs. September)

3. Map – Highlighting India’s impacted industrial clusters

4. Line chart – US export share trend over months









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