Indian textile exporters struggle as US tariff pain persists

India’s textile sector is going through a difficult phase as high US tariffs continue to hurt exports. RK Vij, National President of the Textile Association of India, stated that the prolonged tariff shock is hurting the entire value chain, especially MSMEs.

For over four months now, Indian exporters have been dealing with a steep 50% tariff imposed by the US under President Donald Trump. With no immediate relief in sight, companies are being forced to cut prices, share tariff costs with buyers, and shift production to other countries. While companies are trying to reduce dependence on the US, Vij cautioned that moving to new markets is not easy. Reconfiguring supply chains, machinery and buyer relationships can take six to eight months.

Pallab Banerjee, MD and Group President of Pearl Global, said US buyers are unwilling to absorb the full impact of tariffs unless there is clarity on how long they will last.

Most Indian suppliers are now sharing the tariff burden, which has directly hit profitability.“Most of the manufacturers in India are taking a hit of around 25% tariff, which translates to nearly a 15% cut in selling prices,”Banerjee said, adding that this is not sustainable for long.