Struggling Under the Tariff's Burden: Difficulties faced by Farmers, Artisans, and Small Businesses
In a significant turn of events, increased tariffs imposed by the United States on Indian exports have caused widespread disruptions across various Indian industries and regions, with notable human and global trade impacts.
The shrimp industry, particularly in Andhra Pradesh, has been severely affected. The initial 25% tariff led U.S. buyers to seek alternative suppliers in Ecuador, Indonesia, and Vietnam, undermining Indian shrimp farmers’ livelihoods. The subsequent doubling of the tariff rate exacerbates their economic challenges, threatening jobs and income for communities dependent on shrimp farming.
Similarly, spice-producing regions such as Unjha, Guntur, and Erode are facing sales difficulties despite record export volume growth in previous years. The tariffs have made Indian spices less competitive, pushing American importers to source spices from Vietnam instead. This shift not only impacts the income of spice industry workers but may also alter pricing and availability of spices for American consumers.
Other sectors like basmati rice and tea exports are also affected, with American companies turning to Pakistan for rice and to Kenya and Sri Lanka for tea. This diversification in sourcing disrupts traditional trade ties and could lead to price fluctuations and supply uncertainty in U.S. markets.
The human stories behind these shifts reflect the real economic distress experienced by regional workers and producers whose livelihoods depend on export markets. Ishfaq Naseem's report from Kashmir's orchards, for instance, shows how a 50% tariff threatens walnut and apple growers who are almost entirely dependent on the United States market. Empty godowns and unstable prices in these orchards show the vulnerability of small producers to shifts in global trade, especially with the threat of American imports.
On a global scale, these tariff changes are reshaping trade patterns, fostering new supplier relationships in competing countries, and introducing volatility for exporters in India as well as importers and consumers in the U.S. The Indian textile sector, once a success story of competitive pricing and global scale, risks losing thousands of jobs due to tariff hikes. The future is likely to be shaped by political, legal, and diplomatic responses to these changes in the economic order.
This issue of Outlook Magazine captures the lived realities of those on the frontlines of tariffs and other global economic changes. The stories in the magazine's cover, titled 'The Tariff Weapon', aim to show the scale of disruption in trade and the human stories behind it. Amir Ali of JNU discusses the fading Trump-era bonhomie and the contradictions of India's Global South leadership. Saiyyad Mohammad Nizamuddin reflects on how colonial-era exclusions echo in the denial of rights to Rohingya refugees. Raviprasad Narayanan examines the legal history and the Supreme Court's recent ruling on the case of Rohingya refugees.
The stories also delve into the impact of these tariffs across various industries and regions in India, including textile hubs in Tiruppur and Coimbatore, and orchards in Kashmir. KA Shaji's report from the shrimp belt of Andhra Pradesh reveals despair among women workers in peeling sheds, unsold stock, and fears of an industry heavily reliant on a single buyer.
As the world watches the unfolding of these events, it is crucial to remember the people whose lives are directly affected by these economic changes. These stories serve as a reminder of the human cost of global trade policies and the need for a more equitable and sustainable economic order.
[1] Source: Various reports from Outlook Magazine and other credible news sources. [2] Source: Statements from U.S. Treasury officials.
