Following former US President Donald Trump’s announcement of a 25% tariff on Indian exports, bringing the total tariffs to 50%, textile and apparel manufacturers in Tirupur, Noida, and Surat have halted production. FIEO noted that the textile and apparel sector is losing ground to lower-cost rivals. The tariff increase also poses a significant threat to India’s seafood exports, particularly shrimp, given the US market’s importance. FIEO warns of stockpile losses, supply chain disruptions, and farmer distress. The tariffs put a 30-35% pricing disadvantage on roughly 55% of goods headed to the US. The Confederation of Indian Textile Industry (CITI) stated that textile manufacturers are seeking government support to address the challenges. These increased levies will apply to Indian goods entering the U.S. market on or after 12:01 a.m. They will also affect goods withdrawn from U.S. warehouses for use after that time. According to the US, the hike is the penalty for New Delhi’s continued buying of Russian oil.
