Textile Industry Urges Cash Aid to Offset US Tariff Impact

Exporters seek urgent relief and trade diversification amid US tariff surge.

The Indian textile industry has called on the government for urgent short-term financial support to withstand the steep 50% import tariffs imposed by the United States. During a high-level meeting at the Ministry of Textiles on Tuesday, industry leaders also pressed for a fast-tracking of free trade agreement (FTA) negotiations with the European Union, which they believe could help offset losses from the US market.

As the labour-intensive sector faces potential job cuts, exporters have requested immediate cash flow assistance and a moratorium on loan repayments to manage the sudden financial strain. Industry representatives have also urged the government to absorb 20–25% of the US tariff burden to maintain competitiveness, as American buyers are halting new orders and insisting Indian exporters bear the additional cost.

The meeting, chaired by Union Textiles Minister Giriraj Singh, focused on strategies to safeguard market share, retain employment, and diversify export destinations in the face of rising trade pressures. Industry stakeholders are hopeful that targeted policy measures and accelerated trade negotiations can provide much-needed stability during this challenging phase.