Indian Exporters Rush Shipments to US Ahead of Trump’s 50% Tariffs on Diamonds, Textiles, Seafood
Indian exporters rush diamond, textile, and seafood shipments to the US before Trump’s 50% tariffs take effect on August 27. Dubai route used to avoid duties.
Indian exporters are fast-tracking shipments of diamonds, textiles, and seafood to the US before Trump’s 50% tariffs take effect on August 27.
Indian exporters are racing against time to complete shipments of diamond jewellery, textiles, and marine products to the US before President Donald Trump’s additional 25% tariff on Indian imports takes effect on Wednesday, August 27. The move will raise cumulative duties to 50% on these products.
Exporters in Overdrive
Over the past week, exporters have used both sea freight and costlier air cargo to meet pending US orders. Shipments dispatched before the deadline must reach the US by September 16; otherwise, the higher tariffs will apply from September 17.
Gems & Jewellery: Mumbai’s Seepz zone saw round-the-clock production as exporters rushed July orders by air. Exports in August could rise 15% higher due to frontloading. Surat exporters also accelerated shipments of cut and polished stones, negotiating new margins with US buyers. India’s gem and jewellery exports to the US stood at $10 billion in FY25.
Textiles & Apparel: Exporters from Tirupur and Noida expedited shipments in July, leaving only Christmas and New Year consignments now being airfreighted. India’s textile and apparel exports to the US are valued at $7 billion annually, with July showing a 5.4% YoY growth due to frontloading.
Marine Products: Seafood exporters, including Razban Sea Foods, wrapped up orders last week. Exports to the US reached $2.71 billion in FY25.
Dubai Route Emerges as Survival Strategy
Some jewellery exporters are routing unfinished items through Dubai for completion and onward shipment to the US. Dubai imposes a 10% tariff on US exports and 5% duty on Indian jewellery, which exporters say is still a viable option compared to the 50% US duty.
Trade Tensions Escalate
The US Department of Homeland Security issued a formal notice on Tuesday, confirming that the additional tariffs are in response to India’s purchase of Russian crude oil and are part of broader sanctions against Russia.
India’s exports to the US rose 22% to $33.53 billion in April–July 2025, reflecting strong demand and inventory buildup by American importers ahead of tariff hikes. The US remains India’s largest trading partner, though the latest duties threaten to disrupt this momentum.
