Exporters on Edge as US Tariffs Loom

With the deadline for US tariffs on Indian goods just 48 hours away and no agreement in sight, exporters are anxiously awaiting announcements that could determine the future of their orders. The uncertainty surrounding US President Donald Trump's next move has left many in a holding pattern.

"It's an unpredictable situation," said Sudhir Sekhri, chairman of the Apparel Export Promotion Council. He highlighted the cautious stance of buyers, who are waiting for clarity before proceeding with production.

The Ripple Effect on Various Sectors

Kirit Bhansali of the Gem & Jewellery Export Promotion Council remains hopeful for a favorable deal but acknowledges the immediate impact of tariff uncertainties on orders. The situation is similarly dire for garment exporters, who face additional competition from China in European markets.

Government officials suggest that American retailers, particularly in the jewellery and pharmaceutical sectors, might absorb some of the tariff impacts. However, the stagnant growth in exports to the US tells a different story, with sectors like agrochemicals and dye intermediates seeing sharp declines.

A Glimmer of Hope Amidst Negotiations

Despite the dim prospects for an early trade deal, officials haven't ruled out the possibility of a last-minute breakthrough. The next round of talks is scheduled for August 25, offering a beacon of hope for exporters clinging to the belief that the agreement is a matter of 'when, not if'.

As the lean season exacerbates the challenges for garment exporters, operating at reduced capacity, the industry braces for the uncertain road ahead.