PoriPurno News Desk | August 10, 2025
The United States’ decision to impose a 50% tariff on Indian-made apparel — announced by President Donald Trump — has dealt a significant blow to India’s textile and garment sector. The steep tariff has prompted several global fashion brands to halt or relocate their sourcing from India to competitors such as Bangladesh, Pakistan, Vietnam, and Cambodia.
Tamil Nadu, the hub of India’s knitwear production — encompassing Tiruppur, Coimbatore, and Karur — employs more than 1.2 million workers and exports apparel worth nearly BDT 45,000 crore annually. Around 30% of these exports go to the U.S. market. Industry leaders now fear a 10% to 20% drop in exports due to the new tariff, potentially putting between 100,000 and 200,000 jobs at risk.
K. M. Subramanian, President of the Tamil Nadu Exporters Association, noted:
“Profit margins are only 5% to 7%, making it difficult to absorb the increased costs from the tariff hike. With Bangladesh enjoying a 20% lower duty and Pakistan 19% lower, they are emerging as cheaper alternatives in the U.S. market.”
Under the revised U.S. tariff structure, duties on Indian apparel have surged to as high as 64%, far exceeding rates imposed on other competitors. This price disparity has already led major brands to shift orders to Bangladesh and Vietnam, where production costs and tariffs remain significantly lower.
Increase Your Business with Expert Digital Solutions!
Get Unlimited Facebook Ad Credit, Guaranteed SEO Rankings, & Professional Web Development – all under one roof at MahbubOsmane.com!
14+ Years of Experience – Guaranteed SEO Rankings
800+ Satisfied Clients – Unlimited Facebook Ad Credit
Proven Results, Maximum ROI – Professional Web Development
Contact us ( +8801716988953 WhatsApp ) today and take your business to the next level! Visit: MahbubOsmane.com
In addition to the U.S. import duty hike, Indian manufacturers are also grappling with an 11% import duty on cotton and inconsistencies in the Goods and Services Tax (GST) framework. Industry stakeholders argue that to sustain exports, import duties on raw materials should be reduced to below 5%.
The home textile sector is facing similar setbacks. Factories in Coimbatore and Karur — known for bed linens, towels, and other home furnishing items — are experiencing order cancellations and delays, further disrupting the supply chain.
Trade analysts warn that the increased U.S. tariff could act as a “commercial blockade” for India’s apparel and textile sector, potentially inflicting long-term damage on the country’s market share in the United States.
Do you still have questions? Or would you like us to give you a call?
Call us at wa.me/+966549485900 or wa.me/+8801716988953 to get a free consultancy from our expert or you can directly email us at hi@mahbubosmane.com We would be happy to answer you.
