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The Apparel Export Promotion Council (AEPC) said the industry had reconciled to a 25 per cent reciprocal tariff but the further burden would make Indian exports uncompetitive. \u201cThe additional 25 per cent will close the US market for Indian apparel. Exporters will now face a tariff differential of 30\u201331 per cent against major competing nations,\u201d AEPC Secretary General Mithileshwar Thakur told Fibre2Fashion<\/em><\/strong>. He urged immediate fiscal support until a bilateral trade agreement can be reached.<\/p>\n India’s apparel industry warns of an existential crisis as US tariffs on exports will soar to above 50 per cent from August 27, 2025.
Jasveen Kaur, Senior Director of Merchandising at New Times Group<\/em><\/strong>, described the tariff shock as \u201cseismic,\u201d saying nearly 25 per cent of Tiruppur\u2019s US-bound knitwear orders have already been paused or cancelled. \u201cThis is not about two per cent of GDP\u2014it is about millions of jobs and the survival of entire communities,\u201d she said, adding that exporters are slashing prices to keep shipments moving as US buyers renegotiate or withdraw.<\/p>\n Industry estimates suggest around three million jobs and 20,000 factories are at risk. While some exporters are exploring joint ventures in Bangladesh, Sri Lanka, and Southeast Asia, Kaur noted that diversifying markets and securing new buyers could take more than a year. \u201cWe need decisive government action and stronger diplomatic engagement with the US,\u201d she appealed.<\/p>\n Sanjay K Jain, Chairman of the ICC National Textiles Committee and MD of TT Ltd, <\/em><\/strong>echoed these concerns. \u201cThe industry is at a standstill, and 50 per cent of orders (for export to the US) will likely be cancelled. The rest can only be retained if exporters absorb losses. The impact of such super-high tariffs will be terrible and felt across the entire value chain,\u201d he warned.<\/p>\n While the government\u2019s recent move to waive the 11 per cent cotton import duty was welcomed, industry players said it offers little relief against the tariff shock. Exporters are focusing on cost optimisation, targeting a 15\u201320 per cent reset, but say sustained government support is vital to prevent large-scale disruption in India\u2019s apparel sector.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (KUL)<\/p>\n
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\nExporters face a tariff gap of over 30 per cent against competitors, risking three million jobs and 20,000 factories.
\nIndustry leaders urge urgent fiscal support and stronger diplomatic engagement until a bilateral trade pact is secured.<\/p>\n