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US tariff threat looms over India's baby garment exports

01 Apr '25
4 min read
US tariff threat looms over India's baby garment exports
US tariff threat looms over India's baby garment exports

Insights

  • India's apparel exports to the US may face setbacks due to a proposed reciprocal tariff regime from April.
  • Particularly vulnerable are baby cotton garments (HSN 611120), where India holds a **.*% US market share.
  • A total of ** garment categories with double-digit US shares are at risk.
  • The AEPC has flagged the issue and urged strategic intervention by the Indian government.

Currently, India imposes a ** per cent duty on all garments, whereas the US tariffs range between * per cent and **.* per cent. If the US includes Integrated Goods and Services Tax (IGST) when calculating the total tariff levied by India, the disparity becomes even more significant.

According to a detailed analysis by the Apparel Export Promotion Council (AEPC), India enjoys a double-digit market share in ** garment HSN codes within the US market. These categories are now at risk due to the proposed reciprocal tariff policy. The AEPC has presented its findings to the Indian government to aid in formulating an appropriate response strategy.

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