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Surging US Tariffs Cloud Indian Textile Hopes, Industry Fears Jobs May Vanish

India's vibrant textile and apparel export sector, a cornerstone of its trade with the United States, is facing an unprecedented jolt. With US President Donald Trump imposing an additional 25% tariff on Indian exports following Delhi's oil trade with Russia, Indian exporters now face a staggering 50% reciprocal duty among the highest globally.

This tariff shock has triggered deep anxiety within India’s labour-heavy textile industry, where countless livelihoods hang in the balance. Already grappling with global competition, the sector now faces a tariff range of 59% to nearly 64%, while rival nations benefit from far lower US import duties. This gap, industry experts warn, could spell disaster for Indian manufacturers.

Sudhir Sekhri, president of the Apparel Export Promotion Council, voiced serious concerns. Without immediate fiscal relief, he noted, the added financial strain might spiral into widespread job losses. Echoing this sentiment, Ajay Sahai from the Federation of Indian Export Organisations highlighted that such sharp tariff gaps up to 35% in some cases render Indian goods uncompetitive in global markets.

The government, while defending its energy trade choices, has labelled the US move as unfair and unjustified. Still, as the fifth round of trade discussions looms, hopes are pinned on a breakthrough to ease tensions and bring equitable solutions.

As negotiations continue, the textile industry watches anxiously, its future now tightly woven with diplomacy, trade policy, and international strategy.

  03:39 PM, Aug 07

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