Editor’s Note
This article examines the severe impact of recent U.S. tariff increases on India’s apparel industry, highlighting the sharp rise in unemployment and economic strain. The analysis underscores the broader challenges faced by export-dependent sectors in navigating heightened trade barriers.
More than a month after the U.S. imposed heavy tariffs, India is struggling to cope. On August 27, the U.S. officially implemented a 25% punitive tariff on Indian imports, which, combined with the existing 25% tariff, brings the cumulative tariff rate on Indian products to a staggering 50%. Now, over a month after the policy took effect, many Indian industries reliant on the U.S. market are under significant pressure and are finding it difficult to “hold on.”
India primarily exports ready-made garments, seafood, gems, and jewelry to the United States. Under the impact of high tariffs, exports of these products have slumped, orders have decreased, many workers have been laid off, and the industries are in a state of distress.
Interviews with over a dozen factory workers, labor contractors, and corporate executives reveal that the Trump administration’s trade war has rapidly upended the lives and livelihoods of Tiruppur residents.
The United States is the largest market for Indian seafood exports, accounting for one-third of India’s total seafood export value. Data shows that in the 2024-25 fiscal year, India exported 1,698,170 tons of seafood worth $7.45 billion.
In September 2025, India’s seafood exports fell by 30% to 35% year-on-year, forcing several processing plants in Andhra Pradesh, India’s largest shrimp-producing region, to shut down. Stakeholders point out that the U.S. tariff policy has effectively impacted over 5 million direct and indirect jobs.
The cost of tariffs is also being passed on to the U.S. market. Data shows that shrimp prices at most U.S. restaurants have surged, and wholesale prices have risen by 21% since April.
More棘手的是，美国也很难找到供应虾的替代国家，虽然厄瓜多尔和印度尼西亚等国家理论上可以向美国供应海产品，但现实情况要复杂得多。
The heavy blow of U.S. tariffs has also landed on India’s proud gem and jewelry industry.
The United States is India’s largest export market for gems and jewelry. In the 2024-2025 fiscal year, India’s gem and jewelry exports to the U.S. reached $9.23 billion, accounting for almost one-third of India’s total gem and jewelry exports.
India is the world’s largest diamond exporter, handling 90% of the world’s rough diamond processing business due to its dominance in diamond cutting and polishing.
India’s diamond cutting and polishing industry employs 820,000 skilled workers. According to forecasts by the Gem & Jewellery Export Promotion Council, U.S. tariffs could affect the jobs of 170,000 skilled workers. Among Indian exporters, 85% are small and medium-sized enterprises, which will be unable to withstand the shock of losing the U.S. market in the short term.
The U.S. market is also not immune. According to reports, price increases for diamond jewelry in the U.S. market are also inevitable.
Industry analysts point out that in the United States, the jewelry retail industry is a major sector providing employment and generating income, but the U.S. has no mines or factories. Tariffs will become a “tax on consumers.” Price increases are inevitable, and even if U.S. jewelry retail sales remain stable, volume will decline. This will have a knock-on effect through the supply chain, ultimately leading to reduced production and higher prices.
The profits in the aforementioned industries were already thin, and they are highly price-sensitive with no room for price reductions to adapt to tariffs. Moreover, they involve a large number of jobs. Once affected by tariffs and pushed into losses, factory closures and mass unemployment are not surprising, and there is a risk of dismantling supply chains built over decades.
It is evident that for India, this shock has long surpassed the economic level:它不仅削弱出口动能，更可能引发民生焦虑和社会不稳定风险。而美国消费者面临的涨价压力和零售商遭遇的需求萎缩，也印证了“关税战没有赢家”的道理。
