Rising US Tariffs Pose Challenge for Indian Apparel Exporters
The AEPC Vice President downplays the impact of US tariff increases on Indian apparel exports, emphasizing the potential resolution through diplomatic dialogue. This tariff hike threatens Indian exporters' competitiveness, yet ongoing diplomatic conversations between the US and India suggest a promising outcome for both nations.
- Country:
- India
The Apparel Export Promotion Council (AEPC) Vice President A Sakthivel has downplayed concerns regarding the recent US-imposed tariffs on Indian exports, suggesting these challenges are temporary and hinting at a resolution through diplomatic discussions. The tariff increase by 50% above the baseline, effective from August 27, 2025, could affect the competitiveness of Indian apparel in the US market.
Speaking to ANI, Sakthivel mentioned that Indian exporters heavily reliant on the US market are feeling the pinch due to a 25% penalty on future orders. However, he remains optimistic about resolving the issues through assurances between both governments. His confidence stems from the positive remarks by President Trump and Prime Minister Modi regarding the ongoing strong US-India relations.
Further reassurances came from India's External Affairs Minister, who confirmed immediate talks between the two nations, aiming for a win-win situation for American buyers and Indian exporters. However, ICRA has revised the outlook for India's apparel export industry from 'Stable' to 'Negative', citing the adverse impacts of the tariff hike on export revenues and operating margins.
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