Amid mounting concern among businesses over the 25% reciprocal tariff imposed by the United States, the Ministry of Textiles has convened a meeting today with major textile and apparel exporters from across the country. The session, chaired by Union Textiles Minister Giriraj Singh, focuses on the challenges exporters are facing in order flows, particularly after the recent US decision to levy secondary tariffs on Indian goods, widening the tariff gap with other competing Asian countries.
The US is India’s largest export market for the labour-intensive textile and apparel industry. Exporters have been under pressure since 7th August, when import tariffs were raised to 25% by the Trump administration. The rate is set to double to 50% from 27th August. Exporters say orders have slowed, with buyers either asking them to share the tariff burden or holding back purchases until clarity emerges on trade talks between India and the US.
Officials said a key issue to be raised during the meeting is the disruption of cash flows caused by reduced orders. Exporters have sought Government support in the form of soft loans, interest subvention schemes, and focused market development initiatives to ensure liquidity.
While exporters hope the tariff hike will be temporary, many are concerned about losing market share to countries such as Vietnam and Bangladesh, which face lower US duties. With India’s 25% reciprocal tariff exceeding that of most Asian competitors except China, policy circles are also worried about potential job losses in the sector if the situation persists.
According to officials, the Government is in continuous dialogue with exporters to assess the evolving situation and explore possible interventions. The Ministry of Finance estimates that over half of India’s merchandise exports to the US will be affected by the higher tariffs. The US accounted for 33% of India’s ready-made garment exports in 2024, while also being a key destination for home textiles and carpets—sectors where 60% and 50% of exports, respectively, go to the US.
