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US tariff threatens Indian apparel exports: AEPC
Aug-08-2025

Seeking immediate fiscal support of the government, Apparel Export Promotion Council (AEPC) has said that the doubling of tariffs to 50 per cent by the Trump administration on Indian goods will sound the death knell for micro and medium enterprises, particularly those heavily dependent on the American market. 

AEPC Chairman Sudhir Sekhri has said that the announcement is a huge setback to the labour-intensive export industry and there is no way the industry can absorb this. He said ‘I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the government steps in with direct fiscal support to the industry’. He noted that India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024 and ranks fourth among the top RMG exporters to the United States. 

The US is a key market for Indian ready-made garment exports. America accounts for 33 per cent of India's total garment exports in 2024. In 2024-25, India's exports to the US from this sector include apparel-knitted ($2.7 billion), apparel-woven (2.7 billion), and textiles, made ups ($3 billion). On August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27. The White House said the measure responds to India's continued purchase of Russian oil. 


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