Exporters race against deadline: Diamonds, textiles and seafood shipments rushed to US; Trump’s 50% tariffs kicks in Wednesday

Diamond jewellery, textile and marine product exporters are rushing to clear US orders via air and sea before August 27, when President Trump’s proposed 25 per cent additional tariff on Indian imports takes effect. Over the past week, exporters completed pending US orders mainly through sea transport, while using air cargo—despite higher costs—for final consignments to meet the deadline. Under the directive, the US will levy a cumulative 50 per cent duty on Indian exports from August 27. Shipments already in transit before the cut-off must arrive in the US by September 16; otherwise, the 50 per cent tariff will apply from September 17. The US had earlier imposed a blanket 25 per cent tariff on Indian goods from August 7, followed by another 25 per cent as a sanction for India’s purchase of Russian crude oil. Maritime shipments typically take 25–30 days to reach the US.Also read: Donald Trump’s tariffs to hit 66% of India’s exports to US; China, Vietnam set to gain Production of diamond jewellery has intensified in Mumbai’s Santacruz Electronic Export Processing Zone (Seepz), as US buyers pressed exporters to dispatch July orders by air before August 27. Adil Kotwal, president of the Seepz Gems & Jewellery Manufacturers’ Association, said exports in August could be 15 per cent higher, including September deliveries. “Workers at the 200-odd units in Seepz have worked over the last weekend to finish all the orders so that they can be shipped out before August 27,” as quoted by ET.Surat’s diamond exporters are also fast-tracking shipments of loose cut and polished stones. Jayantibhai Savalia, regional chairman (Gujarat) at the Gem & Jewellery Export Promotion Council, said exporters had negotiated margins with US clients ahead of dispatch. India’s gems and jewellery exports to the US stood at $10 billion in FY25. The US remains India’s largest trading partner. Official data show exports to the US rose 22 per cent to $33.53 billion in April–July, while imports grew 12 per cent to $17.41 billion. The export surge reflects inventory build-up by US importers ahead of tariff hikes. In textiles and apparel, frontloading peaked in July, with only residual orders now being airfreighted. Chandrima Chatterjee, secretary of the Confederation of Indian Textile Industry, said current shipments are largely for Christmas and New Year. July saw 5.4 per cent year-on-year growth in textile and apparel exports on account of frontloading. India’s textile and apparel exports to the US are worth $7 billion annually. Tirupur and Noida hubs show similar trends. Anurag Kapoor of Noida-based Radnik Exports said most shipments are complete, with remaining orders being sent by air. Marine and engineering exporters also wrapped up shipments last week. Rajarshi Banerji of Razban Sea Foods confirmed completion of recent dispatches. India’s seafood exports to the US reached $2.71 billion in FY25. EEPC India chairman Pankaj Chadha noted that shipping lines had maintained regular rates despite rising demand. Industry sources cited by ET that some jewellery exporters are routing unfinished items through Dubai for completion and onward shipment to the US. Dubai levies a 10 per cent tariff on US exports and 5 per cent duty on Indian jewellery. Savalia described it as a survival strategy, while exporters simultaneously explore other markets.In another development, the US on Tuesday formally notified India over the implementation of additional tariffs.Issued by the department of homeland security, the notice said that the tariffs were imposed in response to "threats to the United States by the government of Russian Federation," with India being targeted for new duties as part of the policy."The duties set out in the Annex to this document are effective with respect to products of India that are entered for consumption, or withdrawn from warehouse for consumption, on or after 12.01am eastern daylight time on August 27, 2025," the notice read.Also read: Trump admin notifies India of additional tariffs; deadline due tomorrow