Markets from Chandni Chowk to Nehru Place reeling under 50% US tariffs

Delhi’s wholesale lifelines are in turmoil after the US government’s decision to impose a steep 50% tariff on Indian goods. From the narrow bylanes of Chandni Chowk to the buzzing stalls of Nehru Place, traders are struggling with cancelled orders, ballooning costs, and an uncertain future. Washington has defended the policy as punishment for India’s continued purchase of discounted Russian oil. But on the ground in Delhi, it is small exporters, middlemen, and daily wage workers who are paying the immediate price.

In Chandni Chowk and Gandhi Nagar—the nerve centres of Delhi’s garment and textile business—the mood has shifted from celebration to survival. Together, these markets employ more than three lakh workers and supply fabrics, saris, and ready-made garments across India and overseas. Now, they are reeling under declining export demand.

“One moment we are packaging hundreds of saris bound for America, the next, it’s silence,” said Sunil Kumar, a Gandhi Nagar exporter. He added that margins were already paper thin, and with 50% tariffs, “buyers abroad simply walk away. We can’t compete with Bangladesh and Vietnam now.”

Manoj Kumar, a Chandni Chowk trader dealing in fashion trimmings, described how the strain went beyond lost business. “We’ve been told by US clients to split costs, but how? Rent is rising, suppliers demand advance payment, and our workers expect salaries. We wake up each morning hoping for good news, but all we get is dread.”

Export bodies warn that textiles—among the most labour-intensive sectors—face an existential threat. Unless immediate government relief arrives, tens of thousands of jobs in Delhi’s largest wholesale markets could disappear in the coming months.

Karol Bagh and Mayapuri: Auto parts business stalls

Karol Bagh and Mayapuri, hubs of automobile accessories and spares, are equally shaken. Nearly a third of India’s auto component exports go to the US, and the new tariffs have left dealers scrambling to rework orders.

“We built relationships with clients for years. Now in a heartbeat, everything is re-priced or postponed. Some parts just can’t absorb a 50% hike—the buyer drops them instantly,” said Rohan Pal, a senior trader in Karol Bagh.

His counterpart in Mayapuri was blunt about the looming cash flow crisis, saying their credit cycles depended on exports. If American clients pulled back, payments to factories in Noida and Faridabad would collapse. “It is not just our shops—it’s the entire supply chain that risks unravelling in weeks,” he added.

To cope, traders are experimenting with split shipments, rerouting consignments to Europe and the Middle East, and turning over inventories faster. But these, they admitted, were stopgap measures, not long-term fixes.

Nehru Place: Panic in textile trade

While Nehru Place is known as India’s electronics bazaar, it also houses over 100 textile exporters supplying trims, fabrics, and embellishments. The tariff has hit them unexpectedly hard.

“There is real panic in the market right now,” said Anuj Gupta, owner of AN International, whose store usually ships goods worth Rs 1–1.5 crore annually to the US. He explained that orders are booked a year in advance, and with the tariff shock, clients are either delaying or withdrawing. “Entire families, couriers, packagers—so many livelihoods hang on this trade.”

MP Singh of HP Singh Agencies said that orders for 2026 had vanished overnight. “There’s no explanation, only uncertainty. How do we plan production or commit to workers when the ground shifts beneath our feet?”

The textile traders of Nehru Place—less visible than their Chandni Chowk counterparts—now find themselves at the edge of survival, unsure whether they can withstand another season without major relief.

Traders’ associations sound the alarm

Delhi’s trader bodies have expressed a mix of anger and resignation. The Federation of Sadar Bazar Trade Associations (FESTA) called the tariff hike “unfair and unwise,” warning that it risked triggering a “trade war” between India and the US.

The Gandhi Nagar Market Association, however, struck a cautiously hopeful note, saying it was “only a short-term problem” and exports would eventually be routed to other countries.

Meanwhile, Khan Market traders described the US decision as “impulsive” but voiced faith that Indian exporters would bounce back in the long term. Still, most associations are united in their appeal for urgent government support—ranging from GST cuts to low-interest export credit.

Searching for relief and alternatives

The Modi government has promised to protect exporters through the “Make In India” initiative. In recent days, it extended a duty exemption on cotton imports until December 2025, allowing garment producers to access cheaper raw materials. Officials are also working to fast-track free trade agreements with the EU and the UK to reduce dependency on US markets.

Also Read: Delhi: Juvenile drug rehab centres bursting at the seams

For now, traders themselves are adjusting. Some are exploring exports to Africa, Latin America, and the Middle East. Others are shifting from bulk orders to smaller, high-value shipments to reduce tariff exposure. But as one trader put it: “These are survival tactics. We cannot replace the US overnight—it’s our single biggest customer. Without government help, we are trying to swim with rocks tied to our feet.”

The road ahead

Delhi’s wholesale markets have always been resilient, whether surviving demonetisation, GST reforms, or the COVID lockdowns. But traders agree this tariff shock feels different. Unlike domestic policy changes, it is an external storm, one that individual shops cannot control or adapt to easily.

From Chandni Chowk’s saris to Karol Bagh’s carburettors, Nehru Place’s textiles to Gandhi Nagar’s garments, a single theme repeats: uncertainty, fear, and an urgent plea for relief. The tariff has not just taxed Indian exports—it has taxed the very trust and predictability on which Delhi’s markets are built.

“We built trade bridges with US buyers for decades,” said Sanjay Jain, a Chandni Chowk trader. He now fears those bridges are collapsing. “Maybe they can be rebuilt, but right now, all we see are cracks widening every day,” Jain concluded.