Uncertainty persists among exporters on when the additional global tariff of 15% announced by US president Donald Trump will take effect. However, they remain positive about the situation. Whatever the tariff level, it will be the same for all countries, enabling them to regain customers who moved to other geographies.
The last season saw US orders for the summer supply drop 50% but as the additional tariff for India drop from the high of 50%, the next season should see good recovery, chairman of Jyoti Apparels and former president of Apparel Export Promotion Council (AEPC) H K L Magu said.
The orders that are shipped between May to July are booked in January-February and buyers have moved to other locations. In the September-March season the apparel exporters see buyers returning in a big way, he said.
“Buyers have been placing orders even after the 18% tariff (under the interim deal) was announced. Anything lower than that is only favourable for them,” convenor of the Indian Texpreneurs Federation based in Coimbatore Prabhu Damodaran said. “There is no confusion among buyers in the United States.”
The global tariffs that would be over the regular product-level tariffs that the US imposes on each product are a temporary measure for 150 days, beyond that also clarity would be required.
Despite the uncertainty, exporters are positive about the situation as whatever the level of tariffs would be, it will be the same for all countries, which would enable them to get back the customers who had moved to other geographies.
Exporters on the possibility of 15% duty?
Exporters say that 15% additional duty is better than 18% that were negotiated with the US as part of the interim trade deal announced on February 7. That deal removed 25% Russian oil tariffs and reduced reciprocal tariffs to 18% from 25%. The 18% tariffs were never notified and in between announcements of 15% global tariffs came after the US Supreme Court Judgement scrapping country-specific tariffs.
“Since the announcement of reducing tariffs to 18%, there have been a lot of positive responses from the US. With further reduction of additional tariffs to 15% we are still analysing the implication,” secretary general of Sea Food Exporters Association of India KN Raghban said.
“Buyers have been placing orders even after the 18% tariff (under the interim deal) was announced. Anything lower than that is only favourable for them,” convenor of the Indian Texpreneurs Federation based in Coimbatore Prabhu Damodaran said. “There is no confusion among buyers in the United States.”
Impact of tariffs on Apparel and seafood exports
Apparel and seafood exports were most impacted by the 50% duties the US, their biggest market, imposed. While there will be more clarity regarding the new orders, the old orders that were placed when tariffs were 50% may be opened for renegotiation, founder of Global Trade Research Initiative Ajay Srivastava said.
The 15% tariffs will be charged on goods entering the US from February 24 at 12:01 a.m. eastern standard time. These will be products that left India 15-20 days back and were negotiated with 50% tariffs in mind.
“ It will be between buyer and seller on how they adjust that 35% gap,” Srivastava added. Then there is also an issue of refund of taxes collected through imposition of tariffs ruled illegal by the US Supreme Court. Some estimates suggest that refunds could be in the tune of $ 175 billion.
An industry executive at the Tiruppur Exporters Association says there is still no clarity on claiming refunds of reciprocal tariffs following the verdict by the US Supreme Court.“We have not taken a call on refunds yet, as even players in the United States are unclear. Right now, the priority is to garner fresh orders,” the executive from Tiruppur said.
In many cases the extra tariff burden was equally shared between buyer and the seller while negotiating prices. To maintain relationships and topline intact, exporters sacrificed margins.
As the importer will be getting the refund from the US government, it depends on understanding between buyer and seller on sharing it, chairman of Engineering Export Promotion Council Pankaj Chadha said. Magu said in any case of refund, Indian exporters are unlikely to get cash payments but their dues might be adjusted in future orders.
The knitwear hub lost over ₹15,000 crore of business in 2025 due to reciprocal tariffs, with the US accounting for more than a third of its $7.7 billion exports in FY25. “We had already lost a significant portion of our Spring–Summer and Christmas orders last year,” another exporter from Tiruppur said.
The exporter, who ships baby and infant wear, women’s clothing, joggers and licensed apparel for major brands such as Disney, said the United States earlier accounted for nearly a third of his business. “When the tariff was reduced to 10%, we saw some engagement from buyers in the US. We are now waiting for another round of calls this week,” he said.