Trump tariffs stall $2 billion worth of home textile orders

India exports nearly $37 billion worth of textiles annually, with garments being the largest contributor at $16 billion, followed by home textiles and made-ups.

The home textiles and made-ups segment, which includes products like bed linen, towels, curtains, napkins, and upholstery, is currently the most affected within India’s textile industry. Industry estimates suggest that orders worth approximately Rs 170.94 billion are either under negotiation or have been put on hold. This disruption is primarily due to a sharp decline in demand from the United States, which accounts for nearly 60 per cent of India’s $10 billion home textile exports.

India exports nearly $37 billion worth of textiles annually, with garments being the largest contributor at $16 billion, followed by home textiles and made-ups. In contrast, garment exports to the US make up about 28 per cent of the total, making the home textiles segment more vulnerable to shifts in US trade policies.

Recent correspondence from US buyers to Indian exporters indicates significant pressure for discounts, with demands for up to 50 per cent reductions. Exporters, heavily reliant on the US market, are reportedly complying to retain business. Meanwhile, India is relatively better positioned in terms of tariffs, facing a 26 per cent duty compared to much steeper rates imposed on competitors—Vietnam (46 per cent), Bangladesh (37 per cent), Cambodia (49 per cent), and Pakistan (29 per cent). China, the largest textile exporter globally, faces tariffs ranging from 54- 245 per cent.

Despite these challenges, some exporters have started exploring alternative markets, such as Russia, to reduce overdependence on the US. While the garments sector is also experiencing pricing pressure due to thin profit margins, the broader concern is the potential impact of these tariffs on US consumer demand, which could further affect Indian exports.

Experts believe that although the current situation presents hurdles, it also opens a window of opportunity for India to strengthen its global position—provided timely policy support and cohesive industry action follow.

News source: Money Control