Overview
- Since August, punitive US duties of about 50% on many Indian goods have eroded orders, with US data showing apparel imports down roughly 12% and rugs down 10% year on year in September 2025.
- Exporters describe January as decisive for spring-summer bookings, with Farida Group’s Rafeeque Ahmed citing Jan 15 as the cutoff to lock bulk US orders.
- Firms report production cuts of 20% to 50% and layoffs while offering discounts near 20% as US buyers shave 7%–8% from their margins to keep business flowing.
- Trade talks remain unresolved despite multiple conversations between President Donald Trump and Prime Minister Narendra Modi, with Indian officials saying Washington reviewed a “good offer” as New Delhi extends about US$5 billion in support.
- Companies race to diversify by courting new markets, setting up US subsidiaries, and shifting manufacturing to lower-duty locations such as the UAE, Kenya and Ethiopia.