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Tariff Wars Reshape Textile Supply Chains Globally
Tariff Wars Reshape Textile Supply Chains Globally

Fashion Value Chain

time26-05-2025

  • Business
  • Fashion Value Chain

Tariff Wars Reshape Textile Supply Chains Globally

As trade tensions between the U.S. and China continue, the global textile industry is undergoing a major transformation. Tariff wars have triggered a strategic shift among international brands, prompting them to rethink their sourcing models — and India is emerging as a strong contender in the new landscape. For years, China has been the dominant force in global textile manufacturing. However, growing trade barriers and rising tariffs from the U.S. and EU are pushing brands to diversify supply chains. According to Pawan Gupta, Co-Founder of Fashinza, this disruption is fueling increased interest in India from major global buyers seeking competitive pricing and design-driven, agile production. India, known for its rich textile legacy and extensive manufacturing ecosystem, is well-positioned to step up. But Gupta warns that to fully capitalize on this moment, the industry must scale quickly through inorganic growth — such as acquiring smaller, buyer-connected units — and build tech-enabled, unified supply chains. Major textile hubs like Tiruppur, Panipat, and Surat are already seeing a surge in demand. As pressure mounts, companies are turning to platforms like Fashinza to modernize operations and shorten lead times through digitized sourcing and greater transparency. India's edge lies in its end-to-end capabilities, from raw materials to finished garments, coupled with a vast skilled workforce. However, rising competition from countries like Vietnam, Bangladesh, and African nations means that India's success depends on bold action. To lead the next chapter in global textile sourcing, Indian manufacturers must evolve into strategic supply chain architects—offering speed, flexibility, and resilience in a dynamic geopolitical climate. While tariffs triggered the shift, it is vision, execution, and collaboration that will define the future.

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