Over 2 million jobs at risk in apparel manufacturing sector due to Trump tariff
The new US tariff rate for India has been set at 25%, placing it at a significant disadvantage against major competitors like Bangladesh and Vietnam, which have been placed in lower tariff brackets of 20%. Indonesia and Cambodia have an even lower rate of 19%. The Indian apparel industry was comfortably placed with the originally announced reciprocal tariff structure as it enjoyed tariff advantage vis-à-vis major competitor countries. The liberation day tariff announced originally by the Trump administration against India was 26% whereas it was 37% against Bangladesh, 46% against Vietnam, 44% against Sri Lanka and 145% against China.
The US is the top destination for garment exports from India occupying 33-34% of share, having exports worth $5.333 billion in 2024-25. India commands 6.1% share in their global import of apparel worth US$85.8 billion
The Confederation of Indian Textile Industry (CITI) expressed serious concern, stating that the new tariff structure compounds an already challenging situation. CITI Chairman Rakesh Mehra said, 'The latest U.S. tariff announcement, following which the tariff rates have been substantially reduced for many countries, including Bangladesh, against whom we compete for a larger share of the U.S. market, will compound the difficulties for India's textile and apparel exporters as we will be handicapped by a severe duty disadvantage.'
The industry's concerns are echoed by the Apparel Export Promotion Council (AEPC). Mithileshwar Thakur, AEPC's secretary general, noted that the new tariffs "changes everything."
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