Skilled Workers Face an Uncertain Future

Two decades ago, Jinul Abedeen moved to New Delhi to master Zardozi, an ancient and intricate threadwork technique. After a year of training, he secured a job at Orient Craft, a major garment factory supplying global brands like Gap, Ralph Lauren, and American Eagle.

For 12 years, Abedeen has crafted garments destined for stores 8,000 miles away in the United States. Today, his livelihood is at risk.

U.S. Tariffs Put Indian Exports in Jeopardy

On Wednesday, the White House imposed 50% tariffs on Indian goods, one of the highest in recent history. This decision targets sectors like textiles, steel, diamonds, and automobiles, threatening the businesses and millions of livelihoods that depend on exports to the U.S.

Half of these tariffs are a response to India’s increased purchases of Russian oil after Moscow’s invasion of Ukraine. The other half reflects former President Trump’s “America First” policy, aimed at reducing the U.S. trade deficit, which reached $45.7 billion with India in 2024.

Clash of Economic Visions

The tariffs directly conflict with Prime Minister Narendra Modi’s “Make in India” initiative, which seeks to transform India into a global manufacturing hub, create jobs, and drive economic growth.

At Orient Craft, which exports 82% of its products to the U.S., employees are anxious.

“If the company is in trouble, we are in trouble. If the country is in trouble, we are in trouble,” said Abedeen.

Human Stories Behind the Tariffs

Neeraj Pandey, a factory worker for 22 years, has funded his children’s higher education on a modest salary of $205 per month. Sumitra Devi, a former housewife, now provides for her daughters’ schooling and instills pride in her work.

Both fear that the new tariffs could destroy their livelihoods.

“If I lose my job, the girls will have to go back to a government school… my daughters are so proud,” Devi said.

Economic and National Impact

Launched in 2014, the “Make in India” program aims to reduce reliance on imports, boost manufacturing, and create a skilled workforce. India has invested over $26 billion in incentives for sectors like apparel, yet manufacturing’s share of GDP remains at 17%.

Sudhir Dhingra, Orient Craft’s owner, says orders from U.S. buyers have already been delayed, and Hemant Makhija, head of fabrics at the company, estimates 20 million workers could lose jobs if trade disruptions continue.

Ajay Srivastava, a trade expert, predicts U.S. orders worth $5.4 billion may decline by 60–90%, affecting the garments, textiles, jewelry, and seafood industries, which together account for about 20% of India’s GDP.

Need to Diversify Markets

In Surat, the world’s diamond processing hub, skilled artisans make about 90% of the world’s polished diamonds, employing 5 million people. Experts warn that U.S. tariffs could reduce exports significantly, pushing companies to explore markets in Russia, Europe, and South America.

Nationalist Policies at Odds

Trump’s “America First” agenda prioritizes domestic manufacturing and economic self-sufficiency, mirroring Modi’s nationalist approach. While this aims to reshore production to the U.S., it threatens longstanding trade ties with India and risks undermining India’s role as a counterweight to China in the Indo-Pacific region.

India’s Response

Despite the tariffs, Modi has resisted pressure to compromise, labeling the U.S. actions “unfair” and “unjustified”. India has announced countermeasures, including suspending import duties on raw materials and accelerating trade talks to diversify export markets.

For workers, however, the impact is immediate and personal.

“If my job goes away, I have no other work. I don’t know how to do anything else,” said Pandey.

Key Takeaways

• 50% U.S. tariffs threaten Indian exports and millions of jobs.

• Make in India initiative faces severe short-term setbacks.

• Garment, textile, diamond, and seafood sectors most at risk.

• India seeks to diversify export markets and protect workers.

• Workers’ livelihoods, families’ futures, and national manufacturing ambitions hang in the balance.