Indian exporters from sectors like textiles, food, and marine are reeling from US President Donald Trump’s announcement of a 25% tariff on Indian goods, set to take effect on August 7, 2025. In a recent meeting with Commerce and Industry Minister Piyush Goyal in Mumbai, industry representatives urgently requested financial assistance and affordable credit to mitigate the impact, proposing measures similar to the production-linked incentive (PLI) scheme.

The tariffs, which add to existing US import duties, are expected to hit key sectors hard, including textiles ($10.3 billion), gems and jewellery ($12 billion), shrimp ($2.24 billion), leather and footwear ($1.18 billion), chemicals ($2.34 billion), and machinery ($9 billion). The US accounts for over 30% of India’s leather and apparel exports, and cancellations of US orders are already underway, raising fears of significant job losses.

Exporters highlighted that India’s high interest rates of 8-12% put them at a disadvantage compared to competitors in China (3.1%), Malaysia (3%), Thailand (2%), and Vietnam (4.5%). “US buyers are cancelling or holding back orders, which could severely impact exports and lead to layoffs,” an industry official stated. The Global Trade Research Initiative (GTRI) estimates a 30% drop in India’s US exports, from $86.5 billion to $60.6 billion in FY 2025-26.

Also Read: US Extends Suspension of Reciprocal Tariffs to August 1, Offering Relief to Indian Exporters

Arvind Goenka, a Delhi NCR-based plastic exporter, noted that India faces stiffer tariffs than competitors like Vietnam (20%), Thailand (19%), and South Korea (15%), threatening India’s $2.2 billion plastic goods market share. Similarly, Rafeeq Ahmed, Chairman of Farida Group, urged government intervention to support the footwear industry before a US-India trade pact is finalized. Sudhir Sekhri of the Apparel Export Promotion Council warned that exporters may be forced to sell below cost to avoid mass layoffs.

Minister Goyal advised exporters to submit written suggestions to address the crisis, as the industry braces for a challenging road ahead.

Also Read: White House Announces Steep Tariffs on India, Other Nations.