The Japan Times - Indian garment exporters reel under US tariffs

EUR -
AED 4.048988
AFN 71.653352
ALL 90.233152
AMD 397.442801
ANG 1.973656
AOA 1011.960474
ARS 1704.382464
AUD 1.628051
AWG 1.984235
AZN 1.878376
BAM 1.951036
BBD 2.220877
BDT 137.145087
BGN 1.95499
BHD 0.415753
BIF 3312.570815
BMD 1.102353
BND 1.419813
BOB 12.873388
BRL 6.246268
BSD 1.102607
BTN 103.857962
BWP 15.412153
BYN 3.303388
BYR 21606.119128
BZD 2.217684
CAD 1.573224
CDF 2551.947633
CHF 0.924565
CLF 0.027875
CLP 1097.084206
CNY 7.354624
CNH 7.358449
COP 3659.778945
CRC 494.093407
CUC 1.102353
CUP 26.463016
CVE 110.401089
CZK 24.405329
DJF 195.910612
DKK 7.476493
DOP 66.917109
DZD 151.273137
EGP 58.978161
ERN 16.535295
ETB 177.534385
FJD 2.483877
FKP 0.834353
GBP 0.834294
GEL 2.855525
GGP 0.834353
GHS 12.925133
GIP 0.834353
GMD 81.574515
GNF 9764.096088
GTQ 8.429301
GYD 230.683524
HKD 8.648676
HNL 29.708842
HRK 7.531237
HTG 144.594927
HUF 364.882711
IDR 20101.848202
ILS 3.545943
IMP 0.834353
INR 103.905536
IQD 1668.962467
IRR 2109614.310597
ISK 136.615035
JEP 0.834353
JMD 174.224538
JOD 0.781612
JPY 176.073379
KES 143.361434
KGS 96.384792
KHR 4497.600695
KMF 492.752185
KPW 992.118101
KRW 1473.366503
KWD 0.34335
KYD 0.918844
KZT 491.483094
LAK 24836.013852
LBP 98715.713034
LKR 366.73942
LRD 187.400397
LSL 18.663257
LTL 3.254962
LVL 0.666803
LYD 7.104708
MAD 10.981314
MDL 20.028816
MGA 5059.800729
MKD 61.545168
MMK 2314.774623
MNT 3973.283421
MOP 8.911016
MRU 44.759659
MUR 52.494468
MVR 16.980358
MWK 1913.685217
MXN 20.433771
MYR 4.504329
MZN 70.444469
NAD 18.663252
NGN 1481.088858
NIO 40.570694
NOK 10.552253
NPR 166.167676
NZD 1.994849
OMR 0.424561
PAB 1.102607
PEN 3.75135
PGK 4.97327
PHP 70.506912
PKR 304.914924
PLN 4.405592
PYG 6843.288459
QAR 4.01725
RON 5.348511
RSD 117.465677
RUB 91.30685
RWF 1627.073053
SAR 4.160787
SBD 8.926521
SCR 15.372648
SDG 663.069392
SEK 11.106249
SGD 1.418953
SHP 0.830054
SLE 25.409646
SLL 23115.795624
SOS 631.101139
SRD 41.327623
STD 22816.481805
STN 24.472237
SVC 9.648438
SYP 14332.794295
SZL 18.663243
THB 37.34225
TJS 10.171722
TMT 3.858236
TND 3.316433
TOP 2.654202
TRY 55.49477
TTD 7.484722
TWD 36.257938
TZS 2920.045358
UAH 50.132575
UGX 4553.879273
USD 1.102353
UYU 44.690863
UZS 13271.228337
VES 1006.315196
VND 28358.582532
VUV 132.985681
WST 3.098252
XAF 655.957
XAG 0.022553
XAU 0.000284217451
XCD 2.979165
XCG 1.987211
XDR 0.779421
XOF 655.957
XPF 119.331742
YER 260.762006
ZAR 18.713826
ZMK 9922.503926
ZMW 22.543641
ZWL 354.957222
SSP 6555.09164
MXV 2.294737
  • RYCEF

    0.1000

    19.81

    +0.5%

  • VOD

    -0.2500

    16.33

    -1.53%

  • CMSC

    -0.2800

    20.12

    -1.39%

  • RBGPF

    -2.0000

    65

    -3.08%

  • RIO

    -0.2500

    94.16

    -0.27%

  • BTI

    -1.2000

    54.85

    -2.19%

  • NGG

    -0.3000

    74.94

    -0.4%

  • GSK

    -0.3500

    49.35

    -0.71%

  • BCE

    -0.4200

    20.14

    -2.09%

  • CMSD

    -0.3400

    19.93

    -1.71%

  • BP

    -0.9100

    43.52

    -2.09%

  • RELX

    0.1700

    33.24

    +0.51%

  • BCC

    -0.6200

    75.97

    -0.82%

  • AZN

    -1.9400

    164.21

    -1.18%

  • JRI

    0.0000

    10.77

    0%

Indian garment exporters reel under US tariffs
Indian garment exporters reel under US tariffs / Photo: R. Satish BABU - AFP

Indian garment exporters reel under US tariffs

When Donald Trump was elected, Indian garment exporter R.K. Sivasubramaniam thought the new US president would boost business and invested heavily in anticipation of a boom.

Text size:

But less than a year later, everything is "upside down", he admits with a pained smile.

Trump's 50 percent tariffs on Indian goods, imposed in August, have upset the country's $11 billion textile export industry and shaken confidence in the US market.

Sivasubramaniam's Raft Garments factory in southern India, normally frenetic with humming sewing machines, is quieter and work hours have been cut, hitting employees' paypackets.

If his US buyers turn to other suppliers, half his business could vanish.

Meanwhile, half a million garments sit in towering stacks, ready for shipment but stalled over who will pay the new duties.

Buyers are asking for a 16-20 percent discount.

"We cannot give that much," said Sivasubramaniam, whose desk carries crossed US and Indian flags. "It's a very huge loss for us."

If Raft doesn't shoulder part of the duties, it won't be paid for garments already produced -- leaving it unable to cover costs.

"If it continues for another month... we cannot give work to our employees," he warned.

Trump's anger at India's purchases of Russian oil -- which Washington says help finance Moscow's war in Ukraine -- has left New Delhi facing some of the world's steepest tariffs.

A trade deal that could ease that hinges partly on progress in peace talks.

But the fallout is being felt in Tiruppur, in the southern state of Tamil Nadu.

- 'Worst possible situation' -

Dubbed India's "knitwear capital", and "Dollar City" for its export earnings, the small industrial town produced $5 billion in garments last fiscal year, two-fifths going to the United States.

Its lanes are dotted with thousands of units including dyeing, embroidery and sewing workshops.

Manufacturers paint a grim picture.

"US orders have largely stopped, around 80 percent of the US business has reduced," said Ramesh Jebaraj of Trinity Tex.

In the same season last year, he produced 100,000 garments.

Now he has barely a fifth of that -- forcing him to seek buyers in Israel and the United Arab Emirates.

"This is the situation across Tiruppur," he told AFP. "Some of the bigger factories are on the verge of closing some of their units."

Alexander John of NC John Garments, which supplies Walt Disney, called the tariff standoff "the worst possible situation any business can be in".

With his US orders "completely at a standstill", he has cut shifts and laid off workers.

To stay afloat, he is looking to Europe and Britain but said "none of these markets can replace the US".

Tamil Nadu Chief Minister M.K. Stalin has warned that up to three million jobs could be at risk across the state's textile belt, a grim prospect for a country struggling to provide well-paid work for its youth.

Local industry associations say they have so far avoided widespread layoffs by agreeing to steep discounts on US shipments.

"In the short term, we're giving discounts to the customer ranging from 20 to 25 percent," said N. Thirukkumaran, general secretary of the Tiruppur Exporters Association.

But he admits it is not a long-term solution, and has pleaded for government support.

- 'We are helpless' -

Exporters describe the move as a calculated gamble, by selling at a loss to maintain US buyer relationships while awaiting a trade deal.

At RRK Cotton's facility in Palladam, 17 kilometres (10 miles) from Tiruppur, dimly lit production halls are quieter than normal.

Owner R. Rajkumar, a former tailor who built his business over three decades, has closed two factories and furloughed some staff.

"This is a situation nobody could have anticipated," he said, adding that he was running three factories fulfilling European orders, and shipping some US orders after giving a discount.

He fears the next ordering cycle could be disrupted if US buyers shift to rivals such as Vietnam or Bangladesh.

All that depends on a trade deal.

Meanwhile, anger and confusion run deep among workers and business owners.

"My tailor... He doesn't know what is a trade war, or why India is buying oil from Russia, and why it is affecting our lives, our bread," said Kumar Duraiswamy, CEO of Eastern Global Clothing.

"The problem is we are helpless," he added.

N. Karthick Raja, 38, employed at a small embroidery unit now running reduced shifts, fears for his livelihood.

"If this job goes away, I don't know what I will do next," he said. "America has abandoned us, more or less."

Y.Ishikawa--JT