Indian Textile Exports Face Major Blow as the US imposes 50% Tariff
The US on Wednesday levied an additional 25% duties on a wide range of Indian products on top of earlier announced 25% duties. Apparel, carpets, and made-ups face duty hikes up to 64%, risking a major drop in US-bound shipments.
New Delhi
India’s textile and apparel industry, the largest contributor to Indian exports to the US, is facing a severe jolt as the United States on Wednesday again raised import duties by 25% taking the total duties to a staggering 50% on a wide range of Indian products.
The move to levy additional tariff was announced by President Donald Trump in response to India’s continued import of Russian oil. While the earlier announced 25% duties takes effect from August 7, the additional 25% tariff will come to effect from August 27, 2025.
The textile and apparel sector—comprising garments, fabrics, carpets, and made-ups—exports over $ 10.3 billion worth of goods annually to the US. These now face new effective duties ranging from 52% to nearly 64%, drastically reducing their price competitiveness.
Key textile-related duties include:
- Knitted apparel: 63.9%
- Woven apparel: 60.3%
- Carpets: 52.9%
- Made-ups/textile articles: 59%
The Confederation of Indian Textile Industry (CITI) has voiced serious concern, calling the new tariffs a “huge setback” and warning that Indian exporters may lose substantial market share to countries not subject to similar penalties. “The US is our largest market. These duties will make it nearly impossible to compete, especially against countries like Bangladesh or Vietnam,” said CITI, urging the Indian government to provide relief and push for a quick resolution.
While the US has singled out India for these penalties, other major Russian oil importers—such as China and Turkey—have not been targeted.
Overall, the tariffs affect several export sectors—gems and jewellery, shrimp, leather, chemicals, and machinery—but textiles are expected to bear the heaviest impact due to the volume and tariff hike.
Industry analysts estimate a 40-50% drop in US-bound Indian exports due to the tariff shock. Exporters are now pinning hopes on the early conclusion of the ongoing India-US bilateral trade agreement, which may offer some relief.
However, officials have clarified that India will not compromise on sensitive sectors like agriculture, dairy, and genetically modified products.
(Source: NDTV.com)
