India US tariff negotiations enter 'decisive month', causing anxiety among Indian exporters
The long delayed India US tariff negotiations are making Indian exporters increasingly uneasy. Bloomberg reported on the 7th that several Indian exporters have stated that this month is a decisive month for reaching trade agreements in order to determine contracts for the first half of 2026. If they cannot lock in orders in January, they will miss the summer shopping season in the United States.
In August 2025, the US government imposed punitive tariffs on Indian imports of Russian oil, raising the overall tariff rate on Indian goods to 50%. This move has dealt a heavy blow to India's labor-intensive industries, especially textiles, handicrafts, clothing, gemstones, and leather.
Bloomberg reported that the tariffs implemented since August last year have already damaged the order volume of Indian exporters during the usually busy winter and Christmas seasons. Rafik Ahmed, Chairman of Farida Group, one of India's largest shoe manufacturers, stated that January 15th is the final deadline for securing bulk orders from the United States, which will determine whether stable revenue can be guaranteed for summer and autumn.
US President Trump continues to send signals of chaos. He told reporters last Sunday that high tariffs have prompted New Delhi to reduce its imports of oil from Russia. Trump added, "We can quickly raise tariffs on them, which would be very bad for them." Bloomberg analysis believes that these remarks have raised doubts from the outside world, and it is unclear whether he intends to continue taking a tough stance on India or push for a trade agreement.
On the 7th, New Delhi Television (NDTV) reported that Trump also stated that Modi directly raised the issue of the delivery of American made Apache helicopters to him and said to him, "Can I come see you, sir?" This wording has sparked controversy.
In this context, Indian exporters are beginning to seek alternative solutions. Bloomberg reported that some gemstone and jewelry export companies have established subsidiaries in the United States to manage trade locally, while others have shifted some of their manufacturing operations to countries with relatively lower tariffs, such as the United Arab Emirates. Clothing suppliers are considering transferring some of their production to African countries. Exporters don't have many choices right now, "said Sahai, Director General of the Federation of Indian Export Organizations." One thing is already very clear, which is that we cannot overly rely on US exports
It is worth noting that according to the Indian Business Standards newspaper on the 7th, the Indian Embassy in Washington has hired a US lobbying company to assist in meetings and discussions related to trade negotiations and diplomacy. The company is led by Jason Miller, a former advisor to Trump.