India-US Trade Deal: Indian exporters are suffering losses due to America’s 50 percent tariff imposed on India. In particular, in view of its adverse impact on textile exports, the Apparel Export Promotion Council (AEPC) has demanded immediate intervention from the government, saying that any delay will lead to production cuts and closure of factories.
In a letter to Vice-President CP Radhakrishnan, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said the apparel garment industry is in dire need of support and appropriate action.
America is a big market for Indian clothes
America is a huge market for Indian textiles and apparel. India’s textile exports to America stood at $36.61 billion in the business year 2024-25. In such a situation, textile exporters are suffering huge losses due to the tariffs imposed by Trump. Chairman of AEPC has said that there is a need to immediately resolve the tariff issues between India and America to save the country’s textile exports. For many big Indian textile exporters, the US market accounts for about 70 percent of their total exports.
There is a need to quickly find a solution to the trade deal.
The letter also said, “The recent 25 percent tariff imposed by the US on imports and the additional 25 percent penalty imposed on Russian oil are seriously hampering India’s textile exports, especially to the US, which is India’s largest single export market.”
It said that if a solution is not found immediately, this sector may face stoppage of orders, loss of jobs and permanent loss of market share. Textile exports operate on very thin margins, leaving them with no ability to absorb tariff shocks over long periods of time. It further states that the tariff has resulted in a huge decline in profits and the reserves of the units have also reduced.
No more ability to take damage
The council said that it is commercially impossible to bear the burden of tariff even after 25 percent discount and it is not right to pass the cost on to the buyers. The Council has recommended immediate termination of the India-US trade treaty. It said, “The textile industry has already incurred huge losses in the national interest to protect exports and employment. There is no capacity to bear further losses. Even a delay of 3-6 months could cause permanent damage to a strategic export sector.
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