Tariff Couture: Silk, Gold, Leather – And A 50% Price Tag

It’s been all over your Instagram feed, your Facebook, your X, and even creeping into your dinner table conversations. “The tariffs.” “The reciprocal tariffs.” “The tax.” Whatever happened to Bollywood gossip and paparazzi shots of celebs stepping out of cafés? Let’s take a moment to unravel the commotion—and, more importantly, how it’s about to ripple through the Indian fashion industry.

What Just Went Down

On a bright April afternoon—April 2, 2025—the United States announced reciprocal tariffs on Indian goods (think of it as the trade world’s equivalent of a designer matching your price hike out of sheer principle: if you’re charging me couture rates for prêt, darling, I’ll do the same). For India, that meant an additional 25% tariff slapped on exports bound for American shores.

Then, as summer’s humidity peaked, so did the trade tension. On 27 August, another 25% was layered on top, bringing the total to a staggering 50% for most Indian exports. The exceptions? Pharmaceuticals, energy, and electronics. Because apparently, a saree can be taxed to the moon, but a smartphone gets a free pass.

This will suddenly make your American cousins think twice before ordering that diamond-studded polki or the designer lehenga set for their wedding.

The Fashion Fallout

Textiles & Apparel

The warp and weft of India’s style narrative have taken a hit worthy of a front-row gasp. With tariffs now doubled, Indian fabrics and garments face final duties soaring past 50%. That means everything from chikankari kurtas to bandhgalas will now be treated like limited-edition pieces in US boutiques. These pieces, once part of the accessible luxury closet for American consumers, risk being priced into collectable territory, leaving fashion houses scrambling to keep their overseas buyers hooked.

Jewellery & Gemstones

India’s jewellery exports are no exception to this sparkle tax. Diamonds, gold, and other precious metals are now carrying a heavier fiscal weight, with duties crossing the 50% mark. Beloved minimalist gold hoops and statement jadau chokers—NRI brunch staples—could now cost as much as a Paris Fashion Week ticket. In a market where sentimentality often drives purchases, the romance of owning Indian-made fine jewellery might be challenged by cold, hard arithmetic.

Leather Goods

From totes to painstakingly stitched Kolhapuri sandals, India’s leather exports will now carry a price tag heavier than their actual weight. With nearly 80% of the industry reliant on international buyers—especially in the US—the tariffs are less of a pinch and more of a full-blown runway disaster. Higher costs could push American brands to shift sourcing to other countries, leaving Indian workshops, many of them family-run, facing reduced orders, shrinking production lines, and the sobering sound of silent sewing machines.

The Repercussion

Warning: may cause excessive price tags

Order cancellations? Plenty. Many brands are pivoting their sourcing to countries like Vietnam or Bangladesh, leaving Indian ateliers clutching their Ottomans in despair.

Retail pinch in the US? American customers might notice price spikes on artisanal Indian home textiles, ethnic wear, and handmade rugs—it’s suddenly premium territory.

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Back home impacts? Factories could shrink, weavers might lose pay, and small towns that dream in looms could be left hanging by a thread.

These tariffs are like walking on grass in six-inch heels—technically possible, but wildly impractical and potentially disastrous. India’s soul, from Banarasi silks to Pashmina shawls, is now caught in a trade storm that could reshape how, where, and to whom we sell our most beautiful creations.

The question is whether India’s fashion industry will pivot to reshape its runway of global appeal or buckle under imported adversity. The hope? Indian style doesn’t just survive but thrives in this fiscal market (preferably with a matching scarf).

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From Birkins To Budgets: How Fashion Makes Sense Of Finance