A new 10% US tariff on Indian goods is set to create fresh pressure for India's textile and apparel sector, with exporters warning that the move could hurt their position in the American market. Washington said the levy was linked to concerns about forced labour in supply chains.
For Indian apparel makers, the tariff raises the risk of becoming less competitive in a major overseas destination. The Confederation of Indian Textile Industry has said the measure could affect exports, adding to concerns about pricing and order flows for companies that depend on US buyers.
The impact could be significant because clothing and textile trade is highly sensitive to cost changes. Even a relatively small levy can alter sourcing decisions, forcing exporters to either absorb part of the additional burden or pass it on through higher prices.
The development adds uncertainty for an industry that relies heavily on external demand. Exporters are now likely to closely track how the tariff affects shipments to the US and whether the policy leads to a broader disruption in India's textile and apparel trade.
