NEW DELHI: US buyers are now requesting discounts ranging from 15% to 20% on various products tied to orders placed prior to the significant tariff changes initiated by Trump. While major retailers maintaining long-term vendor contracts continue their sourcing as planned, Indian exporters are beginning to notice that some orders are being on hold.
US buyers are feeling the strain to either absorb or share the increased costs associated with both current orders and those already in transit. According to Rahul Mehta, chief mentor at the Clothing Manufacturers Association of India (CMAI), there exists a significant level of confusion among buyers and exporters alike.
The primary concern is the potential destruction of demand, particularly within industries such as textiles and gems and jewelry, where purchases are often discretionary. As a result, Americans are choosing to delay their buys, raising alarms among industry players about a possible reduction in new orders. Additionally, the rise in tariffs may create cash flow challenges for US buyers, especially smaller businesses, as they face the sudden burden of higher customs duties, as noted by one exporter. Global fashion brands are reassessing their operational strategies in light of these developments.
