In a statement, the SIMA Chairman said this development poses a serious setback that could undermine India’s overall textile export performance in the near term. With the festival season approaching rapidly, the tariff could severely affect export orders for the upcoming summer season.
Dr. Sundararaman highlighted that India exports approximately $11 billion worth of textiles and clothing to the US, which accounts for nearly 30 per cent of the country’s total exports in the segment. India’s share in the US garment import market has risen from 4.5 per cent in 2020 to 5.8 per cent in 2024, reflecting a positive growth trajectory.
He pointed out that Indian exports of made-ups to the US market currently attract a 9.6 per cent duty, while readymade garments face duties of up to 16 per cent—both of which significantly affect competitiveness.
He added that while the 25 per cent tariff may seem manageable when compared to those imposed on competing countries, the real concern lies in the proposed penal tariff, the implications of which may become evident only later. He urged Indian Prime Minister Narendra Modi to take up the issue with US President Donald Trump, request the withdrawal of the penal provision, and expedite the bilateral negotiations scheduled for October–November 2025.
Dr. Sundararaman expressed confidence in the negotiation capabilities of the country’s leadership and added that the industry remains hopeful for a favourable agreement in the near future.
ALCHEMPro News Desk (KUL)
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