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Why tariff gains may not translate into export success

19 Sep '25
2 min read
Why tariff gains may not translate into export success
Pic: Shutterstock

Insights

  • The sharp rise in US tariffs on Indian textiles has prompted buyers to seek alternative sourcing destinations.
  • Some markets hold a price advantage with lower reciprocal rates.
  • Industrial electricity prices remain well above regional competitors.
  • Theoretical tariff edge is proving difficult to convert into orders.
  • Most of the upside will flow to Bangladesh and Vietnam.

Buyers running total-landed-cost models, however, are running into a familiar barrier—energy. Industrial electricity in Pakistan remains around ****¢/kWh, well above regional competitors, and mills face new liquidity shocks from RLNG (regasified liquefied natural gas) arrears. The theoretical tariff edge is proving difficult to convert into purchase orders.

Immediate impact

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