Indian Textile Exporters Halt US Orders After 50% Tariff Increase

Indian textile and apparel exporters have put some US orders on hold. The move follows a rise in the US tariff on Indian goods to 50%.

Exporters from Tiruppur, Noida and Surat have raised concerns about the impact. They say the higher tariff has increased uncertainty and reduced India's competitiveness in the US market.

Higher Tariff Raises Export Concerns

The new tariff has placed Indian exporters at a disadvantage against several competing countries.

According to industry representatives, Bangladesh faces a 20% tariff. Indonesia and Cambodia face tariffs of 19%. Vietnam faces a 20% tariff.

A. Sakthivel, chairman of the Tiruppur Exporters Association, said exporters have decided to stop manufacturing some US orders. He said the impact could continue for 30–40 days while India works towards a bilateral trade agreement with the US.

Sanjay Jain, past president of the Confederation of Indian Textile Industry (CITI), said new orders may not come in the short term. He also said existing orders could be shipped at a loss.

US Is a Key Export Market

The US is India's largest market for textile and apparel exports. China is currently the largest textile and apparel supplier to the US, followed by Vietnam, India and Bangladesh.

CITI chairman Rakesh Mehra said the higher US tariff is a major setback for Indian textile and apparel exporters. He said the move could further weaken India's ability to compete for US market share.

Exports Show Signs of Pressure

India's textile and apparel exports to the US declined for the third consecutive month in June, according to CITI data. The data cited figures from the US Office of Textiles and Apparel, part of the International Trade Administration.

India recorded 3.3% year-on-year growth in June. However, this was lower than the 15–25% growth recorded during the first three months of 2025.

CITI said exports began to decline after the US tariff announcement in April.

Meanwhile, Vietnam and Bangladesh recorded stronger export growth in June. Their textile and apparel exports to the US rose 26.2% and 44.6% year on year, respectively.

The tariff increase has therefore created fresh challenges for Indian textile exporters. Industry players are now watching developments in India-US trade talks and the possible impact on future orders.