US 500% tariff threat: Indian garment exporters 'will have to take risk'

As Indian garment makers power connected machines for the adjacent US fall-winter cycle, the manufacture is bracing for different imaginable shock, with the menace of a 500% tariff clouding export prospects and mill utilisation.Exporters accidental purchaser sentiment has shifted sharply successful caller weeks. “Buyers who were earlier considering shifting immoderate orders to India nary longer privation to come. They person started penning to us, asking what happens if this 500% tariff is imposed, who volition instrumentality the guarantee,” Vijay Agarwal, president of the Cotton Textiles Export Promotion Council told ET. The concerns are enteering the spotlight adjacent earlier the manufacture has recovered from the 50% tariffs imposed by the US past August.Those duties pushed exporters into endurance mode, marked by dense discounting, diversion of unused capableness to home brands and the rerouting of overseas orders done neighbouring countries. The uncertainty deepened connected Wednesday aft US legislator Lindsey Graham said President Donald Trump had cleared a Bill proposing 500% tariffs connected countries that proceed trading with Russia.The US remains India’s largest marketplace for apparel and textiles, accounting for 28–30% of exports.

In 2024-25, India shipped apparel and textiles worthy $37 billion. Since the instauration of the 50% tariffs, the assemblage has struggled to stabilise. Figures from the Confederation of Indian Textile Industry amusement that betwixt April and November 2025, apparel exports inched up by conscionable 2.28%, portion textile exports fell 2.27%.Despite the risks, manufacturers accidental halting accumulation is not an option. “The concern remains highly uncertain arsenic acold arsenic US tariffs are concerned.

But we inactive person to manufacture the goods. We volition person to instrumentality the risk,” Agarwal said.Some companies person already absorbed losses to support export lines running. “We offered heavy discounts to support exports going, hoping the contented would beryllium resolved soon,” said Rajat Jaipuria, managing manager of Kolkata-based Rajalaxmi Cotton Mills, which employs astir 8,000 workers. The steadfast has present moved up with autumn play production, but Jaipuria warned of terrible fallout if the projected duties are enforced.

“We person present started accumulation for autumn play orders. However, a 500% tariff would efficaciously magnitude to an embargo,” helium said. “We are unsure however factories tin proceed operating if exports to the US stop.”For the upcoming season, US buyers person already begun scouting alternatives beyond India. Executives accidental accent signals are emerging successful Tiruppur, the hub that contributes astir 90% of India’s knitwear exports — underscoring the strain gathering crossed the proviso chain.