US Tariff Hike Puts Pressure on Indian Textile Exporters

US tariff hike forces urgent talks between Textiles Ministry and exporters.

As US tariff concerns escalate, the Ministry of Textiles has convened an urgent meeting today with leading textile and apparel exporters from across the country. The discussion, chaired by Union Textiles Minister Giriraj Singh, aims to address the mounting challenges faced by the sector following the US decision to raise import tariffs on Indian textile and apparel goods.

The United States remains India’s largest export market for the labour-intensive textile and apparel industry. However, the recent tariff increase to 25% from August 7, imposed by the Trump administration, has already begun impacting order volumes. The situation is set to worsen with an additional hike to 50% scheduled for August 27.

Exporters report that buyers are either demanding shared responsibility for the tariff burden or putting new orders on hold pending clarity over ongoing US-India trade negotiations. Industry representatives have warned that the widening tariff gap with competing Asian countries could result in significant market share loss for India.

The meeting is expected to focus on immediate relief measures, long-term competitiveness strategies, and possible policy interventions to help the sector withstand the trade shocks. Stakeholders are hoping for decisive government action to safeguard jobs and sustain export growth in this critical segment of the economy.