Textile and apparel manufacturers in Tirupur, Noida, and Surat have temporarily halted production following the announcement of additional tariffs on Indian exports to the United States, exporters said on Tuesday.
The Federation of Indian Export Organisations (FIEO) highlighted that US President Donald Trump’s move to impose an extra 25 per cent tariff raises cumulative duties on Indian goods to 50 per cent, the highest globally. FIEO President S C Ralhan warned that this decision severely threatens India’s cost competitiveness in key export markets.
“Textiles and apparel manufacturers are losing ground to lower-cost rivals from Vietnam and Bangladesh. In seafood, especially shrimps, the US accounts for nearly 40 per cent of Indian exports. The tariff increase risks stockpile losses, disrupted supply chains, and farmer distress,” Ralhan said.
The tariff hike marks a significant setback for India’s largest export market and may disrupt trade flows, hurting manufacturers and exporters who rely heavily on US demand. Stakeholders are urging the government to engage in negotiations to mitigate the impact on India’s textile and seafood sectors.