"India's garment and jewellery sectors fear for US orders after tariff shock", 31 July 2025

India's apparel and jewellery exporters are bracing for a drop in orders from their biggest market and could cut jobs after U.S. President Donald Trump announced a 25% tariff on Indian imports starting on Friday...

Several garment exporters, who had hoped for a bilateral trade deal and were preparing for a rise in orders from U.S. retailers such as Walmart and Costco, have now halted expansion plans as they await the outcome of negotiations, they said...

The United States is India's largest market for garment and jewellery, with nearly $22 billion in exports in 2024...

"We were getting ready for expansion, expecting 10%-15% tariffs under the U.S. deal," said Gautam Nair, director at Matrix Design and Industries Pvt Ltd, a subsidiary of India's largest garment exporter Gokaldas Exports.

Gokaldas U.S. clients include GAP, Walmart and JCPenney...

"If U.S. 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 U.S. buyers, is already under pressure...

"A blanket tariff of this magnitude will inflate costs, delay shipments, distort pricing, and place immense pressure on every part of the value chain - from lower level worker to large manufacturers," said Kirit Bhansali, chair of the Gem & Jewellery Export Promotion Council (GJEPC).

Looking ahead to the U.S. holiday season, exporters are urging the government to find a way to restore stability before September...

"Without a trade deal, exports won't recover," said one jewellery exporter in Surat, India's diamond-polishing hub.

"We'll be forced to cut production and jobs."