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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Trump Tariff: America’s 50 percent tariff imposed on India has been implemented since yesterday. Its effect can be seen on many industries of the country. One of these is India’s textile industry, for which America is the largest market for exports. In January-May 2025, US $ 4.59 billion clothing was exported from India to the US, which is 13 percent more than the previous year.

Why Indian clothes demand in America?

People in America prefer to buy India’s affordable and better quality clothes. This is the reason that India’s share in America’s Garment Import Market has increased. Now due to tariffs, these products will become expensive, which will make it less competitive in American markets than other Asian countries such as Bangladesh, Vietnam, China. In such a situation, what next?

India is eyeing these countries

If there is a problem, then it can also be solved. According to media reports, amidst the heavy tariffs imposed in the US, India is focusing on increasing its scope in 40 countries like Britain, Japan and South Korea to promote its textile exports.

Other countries include Germany, France, Italy, Spain, Netherlands, Poland, Canada, Mexico, Russia, Belgium, Türkiye, United Arab Emirates and Australia. India wants to establish itself as a textile product supplier of better quality and design in these countries. Although India exports 220 countries, imports in these 40 countries can be done on a large scale.

Bad effect on the country’s textile industry

According to a business line report, talking on the US high tariff, the Apectary General Mithileshwar Thakur of the Apparel Export Promotion Council (AEPC) said that the textile sector has been the worst affected with a US $ 10.3 billion exports.

This sector of the country had compromised with the baseline tariff of 25 percent of the US earlier, it was also ready to bear this increased expenses. But 50 percent tariffs have effectively excluded the Indian apparel industry as a difference of 30-31 % is shattered between tariffs on major competitive countries like Bangladesh, Vietnam, Sri Lanka, Cambodia and Indonesia.

Now what next?

He said that the country’s textile industry hopes that there will be some immediate relief from the government to stay in the US market until favorable terms of trade through bilateral trade agreement with the US.

He further said, “This is very important because once the buyer gets a second option with a low rate, it is not easy to get back the lost land and get a share in the market.

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