Indian exporters face US order crunch as trade talks stall

Business Jan 07, 2026

Indian exporters in fashion, leather, handicrafts, and home decor are on edge—they could lose big US summer orders if India and the US don't strike a trade deal by January 15, 2025.
Since hefty 50% tariffs kicked in August 2024, winter and Christmas shipments have already taken a hit.

Why does it matter?

These tariffs have led to fewer US imports from India—apparel dropped about 12% and rugs fell about 10% in September 2025.
Companies like Farida Group have had to cut production and lay off workers as revenue from the US plummets.
Exporters are now offering discounts, scouting new buyers in the UK and US, or even moving operations abroad.
There's still hope for a deal—but until then, uncertainty hangs over thousands of jobs and billions in exports.