‘In a nightmare’: India braces for big layoffs as Trump’s tariffs bite

From textile factories to shrimp peeling units, hundreds of thousands of workers could lose jobs, say traders.

New Delhi, India – In a sprawling market in the Indian capital, Anuj Gupta sits in a corner of his shop as silence hangs over it.

Gupta sources and exports garment accessories – like laces and buttons – to major global brands. But punishing tariffs imposed by United States President Donald Trump have brought Gupta’s business to its knees.

On Wednesday morning, India woke up to 50 percent tariffs imposed on its goods sold to the US, after the Trump administration followed through on its threat of doubling levies from 25 percent over India’s purchase of Russian oil. The White House says Prime Minister Narendra Modi’s government, among the top buyers of crude from Russia, is financing Moscow’s war in Ukraine. Indian officials have accused Washington of double standards, pointing towards how the European Union and China buy more from Russia and how Washington, too, still trades with Moscow.

In the fashion world, the cycle runs a year ahead, explains Gupta – clothes are being designed and made for autumn 2026 at the moment. So, the hovering uncertainty in the market has “hampered the work badly”, leaving a “big dent”, he said. Up to 40 percent of his business is in the US market.

Gupta said until Wednesday morning, he was still hoping against hope. “Maybe Trump is just bullying us for optics, or maybe Modi’s good relations with the US will rescue the situation,” he thought. “But we were the worst dealt.”