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Tariffs

Indian Exporters Rush to Clear US Orders Ahead of Tariff Deadline

Strategic Insights

— 2 min read

As the August 27 deadline looms when the US will levy a 25% additional tariff on Indian imports, exporters of diamond jewellery, textiles, and marine products are scrambling to clear their orders by air or sea cargo. This rush is due to the impending 50% tariff on Indian exports to the US from August 27, with shipments in transit and shipped before the deadline required to land in the US by September 16 to avoid the higher tariff. India's gem and jewellery exports in August are expected to be 15% higher year-on-year, covering September sales shipments.

Key Takeaways:

  • Indian exporters are rushing to clear their US orders by air or sea cargo before the August 27 deadline when Trump's proposed 25% additional tariff on Indian imports will take effect.
  • Exporters have completed producing all pending orders from the US, with most being shipped by sea and the final shipments being sent by air cargo despite higher costs.
  • The US will levy a 50% tariff on Indian exports to the country from August 27, with shipments in transit and shipped before the deadline required to land in the US on or before September 16.
  • India's gem and jewellery exports in August are expected to be 15% higher year-on-year, covering September sales shipments.
  • Exporters in Mumbai's Santacruz Electronic Export Processing Zone (Seepz) accelerated diamond jewellery production in the last fortnight to meet the deadline.
  • India's textile and apparel exports increased 5.4% year-on-year in July due to frontloading, with most of the frontloading happening in July and only pending orders currently being rushed by air.
  • Shipments of marine products and engineering goods, which are heavily reliant on ships, sent their final pending consignments last week.
  • India exported $10 billion worth of gems and jewellery to the US in FY25, and $2.71 billion worth of seafood.
  • The US is India's largest trading partner, with exports to the US rising by nearly 22% to $33.53 billion and imports climbing over 12% to $17.41 billion during April-July.

Statistics:

  • India's gem and jewellery exports in August are expected to be 15% higher year-on-year.
  • India exported $10 billion worth of gems and jewellery to the US in FY25.
  • Exports to the US rose by nearly 22% to $33.53 billion and imports climbed over 12% to $17.41 billion during April-July.
  • India's textile and apparel exports increased 5.4% year-on-year in July.
  • India exports textile and apparels worth $7 billion annually to the US.
  • India exported $2.71 billion worth of seafood to the US in FY25.
  • Shipments of marine products and engineering goods sent their final pending consignments last week.

Sources:

  • Adil Kotwal, president, Seepz Gems & Jewellery Manufacturers' Association
  • Jayantibhai Savalia, regional chairman (Gujarat) at Gem & Jewellery Export Promotion Council
  • Chandrima Chatterjee, secretary of Confederation of Indian Textiles Industry
  • Anurag Kapoor, managing director at Noida-based Radnik Exports
  • Rajarshi Banerji, managing director at Razban Sea Foods
  • Pankaj Chadha, chairman at EEPC India
  • Washington imposed an across-the-board 25% tariff on all Indian-origin goods, effective August 7.

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