Indian textile and apparel exporters are suspending production for US-bound orders following the US administration’s decision to double import tariffs to 50%. The move, announced under President Trump’s trade policy shift, has dealt a major blow to India’s price competitiveness, especially when compared to regional rivals like Bangladesh and Vietnam, who continue to enjoy more favourable trade terms.
Exporters are now facing shrinking margins, rising uncertainty, and potential order cancellations, prompting fears of a significant drop in exports and job losses across the labour-intensive sector. Industry bodies have called for urgent government intervention, seeking support measures and a fast-tracked trade agreement with the US to mitigate long-term impacts.
As India navigates this new trade challenge, the sector remains on edge, awaiting clarity on future policy and global market access.
