The US has introduced 25% tariff and extra penalty responsibility will likely be imposed on India from August whereas it has already imposed 35% and 36% tariffs on Bangladesh and Cambodia respectively. Nonetheless, the US tariff on Indonesia and Vietnam is decrease at 19% and 20% respectively. Until now, the tariff to the US from India was 10%.
“The brand new tariff fee goes to noticeably check the resolve and resilience of India's textile and attire exporters as we is not going to take pleasure in a big responsibility differential benefit vis-à-vis many different international locations, besides Bangladesh, with whom we compete for a bigger share of the US market,” mentioned Rakesh Mehra, chairman of Confederation of Indian Textile Trade (CITI).
The US is India's largest marketplace for textile and attire exports. Throughout January-Might 2025, US imports of textile and attire from India have been valued at $4.59 billion, an increase of greater than 13% in comparison with the identical interval final yr. China is the largest exporter to the US adopted by Vietnam, India and Bangladesh.
The business now expects the tariff subject to get resolved following the bilateral commerce settlement between India and US. Sanjay Jain, managing director of TT Industries, mentioned India had aimed toward 10-15% development in its textiles exports to the US which will likely be impacted because of the new tariff.
