India’s textile, jewelry industries expect blow as Trump’s 50% tariff takes effect

Special India’s textile, jewelry industries expect blow as Trump’s 50% tariff takes effect
Customers buy jewelry during the Punjab International Trade Expo (PITEX) 2024, in Amritsar on Dec. 9, 2024. (AFP)
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Updated 27 August 2025

India’s textile, jewelry industries expect blow as Trump’s 50% tariff takes effect

India’s textile, jewelry industries expect blow as Trump’s 50% tariff takes effect
  • Trump doubled US tariffs on India to 50% over New Delhi’s purchases of Russian oil
  • Indian government estimates the new levies will impact $48.2bn worth of exports

NEW DELHI: Donald Trump’s 50 percent tariffs on Indian exports to the US took effect on Wednesday, with the first impact expected to be felt by labor-intensive sectors such as textiles and jewelry.

In an unexpected move earlier this month, the US president imposed an additional 25 percent punitive levy on Indian goods, citing New Delhi’s purchases of Russian oil. This added to his prior 25 percent tariff on many imports from the South Asian nation, raising the total duty to 50 percent.

While India has referred to the tariff regime as “unfair, unjustified and unreasonable,” it has continued talks with Washington, with the Ministry of External Affairs saying on Wednesday that earlier this week “officials advanced bilateral initiatives” and “discussed trade and investment.”

New Delhi and Washington have been in tariff talks since the beginning of the year, in the wake of the US’ ongoing global tariff campaign. In February, Prime Minister Narendra Modi met with Trump in Washington, D.C. to discuss strengthening bilateral ties, trade relations, and the procurement of new US weapons and aircraft.

In April, the Trump administration said it was imposing a 25 percent reciprocal tariff on Indian goods over India’s continued purchases of Russian oil and to rectify trade imbalances. Though a new deal was expected in July, it was not approved by Trump, leading to a breakdown in talks.

US levies on Indian goods are the highest in Asia and one of the highest tariffs the US has ever imposed on a major trading partner.

As Indian exports to the US are expected to slow down, it will have multiple impacts on India’s economy, including its currency, stock market and investment, said Arun Kumar, a retired economics professor at Jawaharlal Nehru University.

“Our exporters will suffer (in) labor-intensive areas like gems and jewelry, apparel, shrimp … When these units close down, there will be unemployment,” he told Arab News.
Compared to its competitors in these sectors — like Bangladesh, Vietnam, Pakistan or China — the tariffs slapped on India are much higher.

“The competitors will be able to supply at much lower prices than the Indian listing,” Kumar said.

“There will be multiple impacts on the Indian economy through this slowdown in the exports to the US.”

Mallikarjun Kharge, president of the Congress — India’s largest opposition party — warned that hundreds of thousands of jobs in the textile and jewelry sector are endangered.

“The Indian textile export sector is facing potential job losses of about 500,000 including both direct and indirect employment,” he said on X. “In the Gems & Jewellery sector, 150,000 to 200,000 jobs could be at risk if the tariffs continue.”

The US is India’s largest export market, accounting for 18 percent of its exports and 2.2 percent of its gross domestic product.

In a letter to parliament, the Indian Ministry of Commerce and Industry estimated last week that the tariffs will impact $48.2 billion worth of exports, while the Delhi-based Global Trade Research Initiative said the levies could reduce Indian GDP by up to 0.9 percentage points.


Medieval tower collapse adds to Italy’s workplace toll

Updated 3 sec ago

Medieval tower collapse adds to Italy’s workplace toll

Medieval tower collapse adds to Italy’s workplace toll
ROME: The deadly collapse of a medieval tower in Rome has made global headlines, but for trade unions, it is simply the latest of many workplace tragedies in Italy.
“Today is a day of pain and anger,” said Natale Di Cola, secretary general of the CGIL union in Rome, which organized a torchlight procession Tuesday for the worker killed in Monday’s partial collapse of the Torre dei Conti.
A 66-year-old Romanian man, Octav Stroici, died in hospital after being trapped for hours under the rubble of the building, which was being renovated as part of a public project using European Union funds.
An investigation is underway into what happened on the site, in a busy area near the Colosseum, but one of his fellow workers told AFP that the site was “not safe.”
In a statement, the CGIL warned it was “a tragedy that requires decisive action from institutions and the corporate world.”
Some 575 people have died in workplace accidents in Italy so far in 2025, according to Inail, a public body that manages insurance for such incidents.
Construction and manufacturing were the main sectors affected.
The incident rate is only slightly above the EU average, but the tragedies regularly make the news, appearing from the outside to be the result of mundane mistakes.
The number of workplace deaths “is unacceptable,” Pierpaolo Bombardieri, general secretary of the UIL union, told AFP in a recent interview.
On the same day as the Rome tower collapse, four other people died in workplace accidents, according to the CGIL.
These included a 31-year-old who fell while working in a quarry in the Brescia area, and a construction worker, 63, who died nearly two months after an accident near Naples, the union said.

- Government changes -

Last week, Italian Prime Minister Giorgia Meloni’s hard-right government published a new law on workplace safety, after months of talks with trade unions.
The decree introduces a nationwide electronic badge for companies working on construction sites, including subcontractors, boosts inspections and offers financial incentives for firms that reduce accidents.
The UIL union gave it a “positive assessment” but warned this week that “there is still much to be done.”
Francesca Re David, confederal secretary of the CGIL union, described the measures as “extremely limited,” saying they “do not adequately address the real emergencies.”

- ‘World collapsed’ -

Antonino Ferrara cannot remember his accident, just that he suddenly found his right arm crushed in an aluminum melting press, the artificial fibers in his fleece burning.
“My world collapsed at that moment,” the 29-year-old told AFP, recalling the incident at a factory in northern Italy in 2022.
He said he had not received any training, nor was he wearing the right protective clothing at the time.
“I had the interview, they showed me the machinery, and they said, ‘See you tomorrow’,” he added.
He believes he may have made a mistake, but said an investigation later found there was no safety system in place.
Fabrizio Potetti, regional secretary of CGIL in the region of Lazio, said the biggest issue in workplace safety was the lack of standards among subcontractors.
“If we look at large companies, their accident rate is close to zero, but in the chain of contracts and subcontracts, especially among small and medium-sized firms, that’s where accidents happen,” he told AFP.
Subcontracting companies, Potetti said, “save on labor costs, on safety, on training.”
The UIL union has also pointed to continued issues in subcontracting, and this week said more could be done on improving the quality of training and tackling undeclared work.
“We cannot stop. The lives of workers must be respected and protected, to achieve the only tolerable number — zero,” said UIL confederal secretary Ivana Veronese.