Indian Exporters Report Rise in US Enquiries Amid Tariff Uncertainty Ahead of July 24 Deadline

Chemical, textile, carpet and leather goods exporters say enquiries from US buyers have increased, but policy uncertainty continues to delay order conversions.

Indian exporters in the chemicals, textiles, carpets and leather goods sectors have reported an increase in enquiries from US buyers ahead of the July 24 expiry of the 10% tariffs imposed by the United States. Despite the rise in interest, exporters said the enquiries have not yet resulted in firm orders due to uncertainty surrounding US trade policy.

According to exporters, concerns over the possible imposition of Section 301 tariffs and continued unpredictability in US trade measures are discouraging large purchase commitments.

The United States was India's second-largest trading partner in 2025-26, with India's goods exports increasing 0.92% year-on-year to $87.3 billion.

“There is uncertainty on what will happen as the US may impose Section 301 tariffs. That challenge is there,” said Ajay Sahai, director general, Federation of Indian Export Organisations.

Handicraft exporters also said fresh enquiries have started coming in, although these have yet to convert into confirmed business.

“The situation is not too bad and has improved since last month. Business is reviving and enquiries are rising,” said Sharad Kumar Saraf, chairman, Technocraft Industries.

In February, the US Supreme Court invalidated the tariffs imposed under the International Economic Emergency Powers Act (IEEPA), after which the Trump administration introduced 10% tariffs, which are scheduled to expire on July 24. Under the IEEPA, the US also imposed 50% tariffs on India, half of which were introduced as a penalty for buying Russian oil.

India and the United States continue to negotiate a trade agreement. At the same time, the US has proposed an additional 12.5% duty on imports from 54 countries, including India, over the alleged failure to restrict imports of goods produced with forced labour in third countries.

The US has also proposed new tariffs on most Indian goods under Section 301 of the US Trade Act of 1974, concerning forced labour, while conducting another investigation into excess industrial capacity. The hearing for the second probe is scheduled for July 7.

“While globally there are signs of optimism, unpredictability of the US is a challenge and matter of concern. Enough demand is coming and if the war stops and the US starts looking in, business will grow,” said Mahavir Pratap Sharma, founder of Jaipur-based hand-knotted woollen carpet exporter Oscar Expo Design.

Engineering Export Promotion Council chairman Pankaj Chadha said engineering exports are already subject to the US' Section 232 tariffs and that the July 24 deadline is not expected to have a significant impact on the sector.