US Tariffs Hit Indian Textile Exports

US President Trump's announcement of a 25% additional import duty on Indian goods severely impacts Indian textile exporters. This tariff, imposed due to India's purchases from Russia, gives competitors like Vietnam and Indonesia a pricing advantage, leading to potential order cancellations and market shifts.


Devdiscourse News Desk | New Delhi | Updated: 31-07-2025 15:51 IST | Created: 31-07-2025 15:51 IST
US Tariffs Hit Indian Textile Exports
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In a significant move, US President Donald Trump has announced the imposition of an additional 25% import duty plus penalties on goods imported from India, starting August 1.

The new tariffs, attributed to India's crude oil and military dealings with Russia, are poised to severely impact India's textile sector, especially with the US being its largest market.

Experts warn of order cancellations and increased pressure on Indian exporters, as countries like Vietnam and Indonesia now enjoy a competitive pricing edge due to their lower tariffs.

Industry insiders, including Cybex Exim Solutions, highlight that out of the substantial $17 billion in ready-made garment exports, $5.6 billion is directed towards the US market. The increased costs could lead many exporters to either face order cancellations or drive them to reduce their prices significantly.

Despite maintaining a lead in quality over Bangladesh and Cambodia, the tariff imposition has applied enormous pressure on Indian manufacturers, particularly smaller players. Chatterjee from the Confederation of Indian Textile Industry expressed concern about the unspecified penalties accompanying the tariffs, creating uncertainty for exporters.

Chatterjee further suggested that Indian exporters shift focus towards other global markets, including the UK, EU, UAE, Japan, and Korea.

Rajeev Gupta of RSWM Ltd emphasized the pressing concern of the undefined penalty related to India's diplomatic ties with Russia, emphasizing the need for clarity, especially against China.

(With inputs from agencies.)

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