The Indian government is projecting false bravado over the 50% tariffs imposed by the United States.
While claiming it won’t affect the country, the Centre has started trade talks with nations like China and Japan. But in the meantime, the damage is already happening.
Textile exports have fallen by 30%. Wholesale traders are struggling to clear stock. Experts predict exports may drop by 50% in the next two months.
If that happens, the domestic textile industry will collapse. Many industries in Kolkata, Tiruppur, Surat, and Noida have already cut production.
The tariff shock has also hit the aqua sector. In Telugu states, demand for 90-count shrimp has fallen sharply.
With exports blocked, the stock is flooding local markets and prices have crashed. If this continues, even the maintenance of fish ponds will become unviable.
Kerala’s seafood industry is also suffering. The price of cuttlefish has plunged from ₹400 to ₹300 per kg. Octopus, which used to fetch ₹300 per kg, has dropped to ₹230. Rates are expected to sink further in the coming month.
Because of the U.S.’s new import policy, many companies are unwilling to buy stocks. In Odisha’s Gopalpur area, 20 hatcheries have already shut down, leaving 10,000 people jobless.
In Surat, not only textiles but also diamond and jewellery businesses are reeling. Tariffs that once stood at just 2.1% have now shot up to 52.1%, shocking companies in the region.
Although the impact is also hitting chemicals, auto-parts, and furniture, the pain isn’t visible yet. Experts warn that if the situation continues for another 4–5 months, those sectors too will start to shake.
While the Centre has begun talks with other global powers, experts point out that such deals take time and are unlikely to be as profitable as trade with the U.S.
