After U.S. Tariffs, Which Indian Products Will Get Cheaper at Home?

By S.K. Gupta, Advocate, Supreme Court of India

 

The sudden imposition of a 50% tariff by the United States on Indian exports has shaken India’s export-oriented industries. While the first reaction is one of loss, panic, and disruption, there is also a paradoxical after-effect within India: goods once meant for U.S. shelves may now flood the domestic market at discounted prices.

 

I say, after Deepawali: SALE, SALE, SALE – HEAVY DISCOUNT!  Why? Because exporters, faced with order cancellations and prohibitive duties, will try to offload unsold stocks in India or sell to alternate markets at reduced margins. History tells us whenever external markets close, domestic consumers briefly enjoy access to export-quality products at cheaper rates.

 

Sectors Likely to See Price Decline

1. Textiles and Apparel – SALE, SALE

India exported USD 10 billion worth of garments and fabrics to the U.S. in 2024–25. With American buyers withdrawing, hubs in Tiruppur, Ludhiana, Noida, and Surat are now redirecting stocks locally. Consumers may soon find export-quality shirts, knitwear, and cotton garments at knockdown prices.

 

2. Gems and Jewellery – SALE-SALE

The Surat diamond polishing industry is reeling under layoffs. Exporters are now offering polished diamonds and studded ornaments in Indian retail markets at softer rates. This festive and wedding season could see jewellery at never-before discounts.

 

3. Seafood (Shrimp & Marine Products)

Nearly 40% of India’s shrimp exports go to the U.S. With the tariff shock, exporters are diverting consignments back home. States like Andhra Pradesh, Odisha, and Gujarat will see oversupply of prawns and frozen seafood. Consumers gain, but producers bleed.

 

4. Leather and Footwear – SALE, SALE

Exports worth USD 870 million to the U.S. have turned unviable. From Kanpur, Agra, and Chennai, leather shoes, belts, handbags, and accessories are entering the domestic market. Expect visible retail discounts.

 

5. Furniture and Home Goods – SALE

Exporters to U.S. chains now sit on unsold stock of furniture, mattresses, and bedding products. These will enter Indian showrooms with festive markdowns.

 

6. Chemicals and Engineering Goods

Certain dyes, basic chemicals, and machinery may also become cheaper. However, this sector may prefer cutting production over flooding local markets.

 

Legal & Industrial Implications

For Advocates: Expect a rise in industrial disputes, ID cases, and statutory violation matters (non-payment of PF, gratuity, wages) as exporters struggle financially. Courts and tribunals will see more contract enforcement disputes and labour litigations.

For India at WTO: India may challenge the U.S. tariffs as inconsistent with GATT tariff bindings. But WTO disputes take years, leaving industries vulnerable in the interim.

 

 

The Double-Edged Sword

Consumers: Enjoy short-term gain – cheaper, export-quality products at home.

Producers/MSMEs: Face margin squeeze, stockpiles, and possible closures.

Economy: Risks job losses and shrinking export earnings, even as domestic markets see temporary glut.

 

 

Conclusion

The U.S. tariff decision will hurt India’s export story, particularly in labour-intensive sectors. But paradoxically, Indian consumers may enjoy SALE, SALE, SALE prices on textiles, jewellery, seafood, leather, and furniture in the coming months.

Yet, this honeymoon is temporary. Sustaining India’s export base requires:

Government support to MSMEs

Diversification of export markets

Legal recourse at WTO

 

Cheap goods after Deepawali should not distract us from the larger challenge: safeguarding India’s place as a competitive global exporter.