India’s apparel exporters, long trusted by global buyers for sustainable fashion sourcing, are navigating the latest round of US tariff hikes with a renewed focus on resilience and market diversification. Tariffs on garments have climbed beyond 50%, prompting coordinated efforts to sustain export momentum and safeguard long-term partnerships with American buyers.
According to the Apparel Export Promotion Council (AEPC), the tariff change creates a price differential against some competing nations. “The additional 25 per cent will close the US market for Indian apparel. Exporters will now face a tariff differential of 30-31 per cent against major competing nations,” AEPC Secretary General Mithileshwar Thakur said. He called for immediate fiscal support until a bilateral trade agreement is secured.
Strengthening sustainable fashion sourcing chains
Industry representatives emphasize that the situation, while challenging, is also driving faster action across India’s value chain, from pricing strategies to new sourcing collaborations. Key focus areas include:
- Protecting jobs across the apparel ecosystem
- Supporting MSME units that supply US buyers
- Strengthening cost competitiveness and buyer confidence
Jasveen Kaur, Senior Director of Merchandising at New Times Group, described the impact as “seismic,” noting that while a quarter of Tiruppur’s US-bound knitwear orders have paused, exporters are ‘actively working to sustain long-term relationships with US partners while exploring new regions.’
Exporters are responding through pricing flexibility, supply chain agility, and diversified market outreach, ensuring they remain a strong sustainable fashion sourcing base for international buyers. Kaur also pointed out that expanding into new markets and building trust with buyers is likely to take more than a year.
Coordinated policy support and diplomacy
Industry leaders are calling for targeted measures to enhance the industry’s competitive edge. Sanjay K Jain, Chairman of the ICC National Textiles Committee, emphasized that ‘timely policy and diplomatic engagement will help retain market share and open new opportunities.’
The government’s recent decision to waive the 11% import duty on cotton is viewed as an early signal of support. Exporters believe broader trade engagement between New Delhi and Washington can ensure the US remains a key market while India expands its global buyer base.
Attribution:
Source: This article is adapted from original reporting by Fibre2Fashion, published on 25 August, 2025.
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