‘There is panic in the market’: At Delhi’s Nehru Place, textile businesses feel Trump tariff strain

One such shop, A N International, is a veritable storehouse of trimmings and accessories — its walls are lined with shelves full of buttons, buckles, zippers, laces and ribbons in every color and size imaginable. Designers, both Indian and international, are often seen browsing in the tiny shop, barely wide enough for two aisles, meticulously looking through embellishments and trillings for their upcoming collections.

With US President Donald Trump doubling the tariffs on India to 50%, shopkeepers and traders in this South Delhi hub are beginning to feel the heat. Orders from American clients are in limbo, and long-standing supply chains — built on decades of trust — are starting to unravel, say shopkeepers.

“There is panic in the market right now,” says Anuj Gupta, owner of AN International. He employs four people in his store and estimates that he does business worth Rs 1-1.5 crore with the US every year.

“All exporters want to get their products ready and shipped to America before the deadline for additional tariffs,” he adds.

While 25% US tariffs on India have already kicked in, government officials have said the levy of another 25% could come into effect on August 27.

The Indian Express had previously reported on the massive disruptions being experienced by labour-intensive sectors, including textiles, footwear, gems and jewellery, and fisheries, due to high tariffs on India.

Traders estimate that there are approximately 105 textile traders based in Nehru Place employing a staff of around 1,000-1,200 people. (Express photo by Devansh Mittal)

The apparel sector is the largest employment provider after agriculture and employs 12.90 million workers, 65-70% of whom are women, according to the Apparel Export Promotion Council (AEPC).

Traders estimate that there are approximately 105 textile traders based in Nehru Place employing a staff of around 1,000-1,200 people. It indirectly employs approximately 10,000 people, including support staff such as courier services.

M P Singh, a textile trader and owner of HP Singh Agencies, says textile supply chains, which have a long gestation period, will have to be recalibrated.

“Designers and exporters have to place orders a year in advance for fabrics. For instance, orders for the 2026 summer collections are placed in the summer of 2025, as a lot of time is needed to source large quantities of fabrics, stitching, and shipping them to different countries and then transporting them to individual stores,” he explains.

“However, orders for 2026 did not come in — first because all the foreign designers sent here by companies left the country during ‘Operation Sindoor’ and subsequently due to the uncertain atmosphere created by Trump,” Singh, who employs 19 people in his store, says.

While he claims his order book remains strong, thanks to only a small share — around 10% — of orders going to the US, others like Gupta face more pressure. A significant portion of Gupta’s products are used in garments bound for the US, and finding alternative export markets isn’t easy.

“American supply chains were built over the years. Our exporters have known our clients for a long time now. We are looking at other markets now too, like Southeast Asia and Australia, but to find the right people to do business and build trust takes time,” Singh, who is also the Vice-President of the Nehru Place Export Fabric Suppliers Association, says.

He adds that those who cater to large orders with longer timelines will be hit the hardest as their orders will go to competitors like China, Bangladesh, and Vietnam.

While China continues to be the top exporter of textile and apparel items in the US, its market share has come down from 27.4% in 2020 to 21.9% in 2024. However, India’s market share has been rising.

The US is a key market for Indian Ready-Made Garments (RMG) exports; its share in India’s total garment exports in 2024 stood at 33%, AEPC has previously said. India’s presence in the US garment import market increased from 4.5% in 2020 to 5.8% in 2024. India ranks fourth among the top RMG exporters to the US, it said.

The Indian Express previously reported that the textile industry has asked the government for immediate cash support and a moratorium on repayment of loans to endure the tariff shock that could lead to job losses in the industry.

Amritansh Kishore, a garment manufacturer, however, feels optimistic about the situation. “Everything is a little chaotic currently, and some of our buyers are apprehensive about placing orders, but that is because no one knows what Trump will do the next day,” says Kishore.

He employs 175 people in his factory and sends garments worth Rs 95 lakh annually to the US.

“Many of our customers have sampled prototypes and are just waiting for these tariffs to be rolled back to place orders,” he adds.

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