US Tariff Hike Imperils Indian Apparel Industry
Small firms face ruin without government aid.
The Apparel Export Promotion Council (AEPC) has sounded the alarm, urgently requesting government fiscal support as a 50% US tariff on Indian goods, introduced by the Trump administration, threatens to cripple micro and medium apparel enterprises. Effective August 27, the tariff combines an existing 25% duty with an additional 25% levy, targeting India’s continued purchase of Russian oil.
AEPC Chairman Sudhir Sekhri described the tariff increase as a devastating blow to the labour-intensive apparel export sector. “The industry cannot absorb this,” Sekhri warned, stressing that without immediate government intervention, small and medium firms heavily reliant on the US market could collapse. The US represents 33% of India’s garment export market, a critical revenue source.
In 2024-25, India exported $2.7 billion in knitted apparel, $2.7 billion in woven apparel, and $3 billion in textiles and made-ups to the US. India’s share of the US garment import market has grown from 4.5% in 2020 to 5.8% in 2024, securing its position as the fourth-largest ready-made garment exporter to the US.
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The tariff hike endangers small firms unable to bear the steep cost increase, jeopardizing jobs and economic stability. Sekhri called for direct fiscal support to protect the industry, which employs millions and significantly contributes to India’s export economy.
