Inside Indian factories were severely affected by 50% tariffs on the US

The sad silence hangs over the clothing of N Krishnamurtt’s clothing in Tiruppur, one of the largest export centers in India.

Only a share of about 200 industrial sewing machines on the floor acts when workers make the latest children’s clothes for some largest American retailers.

At one end of the room of a pile of fabric for new designs collect dust – victims of US President Donald Trump steep 50% tariffs on Indiaset to start with Wednesday.

India is the main exporter of goods, including clothing, shrimp, gems and jewelry, in the US. Trade experts say Looks like an embargo on Indian goods.

BBC correspondents visited key export nodes across India to evaluate how the uncertainty of trade affects business owners and livelihoods.

Across Tiruppur – a third of India’s third of $ 16 billion (£ 11.93 billion) exports of finished clothing to such brands as Target, Walmart, Gap and Zara – there is a sharp anxiety about what the future awaits.

“September and on, maybe nothing will remain,” Krishnamurti said when customers stopped with all orders.

Recently, he had to suspend his plans to expand and bench nearly 250 new workers who were hired before tariffs were imposed.

The timing of the announcement has aggravated things because almost half of the annual sales for most export enterprises are carried out during this period, on the eve of Christmas.

Now these units are engaged in the bank in the domestic market and in the upcoming season of the shadow in India to survive.

At another factory that makes underwear, we saw an inventory of nearly $ 1 million designed for American stores scored without participants.

“We hoped that India would be ink trading deal from the US. The whole production chain was frozen last month. How would I pay workers if it continues?” Subramaniam’s Subromania, the owner of the Raft Facements, said the BBC.

At 50% of the tariff rate of the Indian -made shirt, which once sold for $ 10, will cost us buyers $ 16.4 – much more expensive than $ 14.2, $ 13.2 from Bangladesh or $ 12.

Even if the duties of ease is up to 25%, India will be less competitive than its Asian peers.

To mitigate the blow, the government announced, for example, some measures – suspension of import duty on raw materials. Trade negotiations with other countries also gathered impetus for markets. But many are afraid that it’s too little, too late.

“We can count on trade sabotage when US buyers move to Mexico, Vietnam and Bangladesh,” said Aji Srivstov from a global trade research initiative.

On the export zone in Mumbai, hundreds of workers are employed by about 1200 km (745 miles), engaged in diamond and packaging of diamonds, part of the precious stones of $ 10 billion and trade jewelry.

But jewelry brands are nervous here about the potential influence of tariffs on their sale in September and October – when jewelry worth $ 3-4 billion is sent to the United States.

While new trading partnerships with the UK and Australia have opened opportunities, years of efforts to build presence in the United States can be canceled in the month, fears Adil Cotol from Creation jewelry, which sells 90% of its precious stones in the US.

It works at 3-4% thin reserves, so even 10% of the additional tariff rate is difficult to maintain. “Who can absorb these tariffs? Even the American retailers will not be able to (do it),” Kotol BBC said.

Kotol sources of his stones from the city of Surat in the neighboring state of Gujarat. In Surat, in the world, diamond and polishing, the crisis causes crisis Long before the tariffs hit Due to a decrease in global demand and competition from laboratory diamonds.

And now tariffs are double.

US customers have disappeared, and factories that supported nearly five million livelihood now work almost 15 days each month. Hundreds of contract workers were sent on an uncertain holiday.

Inside the dimly illuminated diamond polishing on the outskirts of the city, the rows of dusty, unused tables are stretched silently. Nearby the broken processors are scattered.

“This place is buzzing earlier,” the employee says. “Many people have recently fired. We don’t know what will happen to us.”

Shelesh Mangia, who built the unit, says he once worked 300 workers. Now there is only 70.

Local union leaders, such as Bhavesh Tank, say workers are faced with “reducing wages, forced rest and reduction of monthly income”.

Meanwhile, many of India’s shrimmers are considering moving to other products to survive the blow. India is one of the largest shrimp exporters into the world – and the USA is the main market.

Along with other responsibilities, the total tariffs on the shrimp are now above 60% – the blow to the sector, as the prices decreased by 0.60-0.72 per kilogram, as the tariffs were first announced and expected to fall on, as soon as 50% of the rate will take effect.

“This is the peak of the season for us, which buyers are preparing for Christmas and New Year. Farmers are just starting their new growing cycle. Trump’s tariffs have caused great confusion. We are unable to make any decisions,” the BBC Thota Jagadeesh said.

Incubation operators say they significantly reduced the production of shrimp larvae.

“We used to produce an average of 100 million shrimp larvae annually. Now we do not even reach 60-70 million,” said Ms. Vermanorajan in the city of Verarava.

It is estimated that all this can affect the livelihood of half a million shrimp farmers and another 2.5 million indirectly.

In a country that already affects the prolonged crisis of job creation, these are disturbing figures.

So far, the deadlock between India and the US is ongoing. If anything, the environment for further trade negotiations has deteriorated significantly in the past weeks.

It is reported that the last round of trade negotiations, which were supposed to start in Delhi this week, and US officials doubled their criticism in India, accusing him of “brazen” Beijing and “laundry” for Russia.

“The future of India and the US talks are currently largely dependent on the priorities of Trump administration, both for domestic, as well as those involved in Russia and China, among others,” said BBC Gopal Naddur of Asia Group.

“For Indian politicians, and for business executives, mantras should be: increase independence, diversification and leave the stone without crowded.”

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