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India garment makers rethink reliance on US after tariff shock
Indian exporters are redirecting orders to Britain and Europe as US tariffs cut demand, with exports to other markets rising 3.7% to $15.2 billion, researchers said.
- Indian garment makers are aggressively reconfiguring export destinations to reduce reliance on the U.S. market, pivoting toward Britain, Europe, and domestic sales following a 2025 tariff shock.
- U.S. President Donald Trump's tariff hikes, first announced in April 2025, prompted American buyers to cancel orders or demand discounts, forcing suppliers to absorb 25 per cent of the duty despite manufacturers' margins being less than 10 per cent.
- According to the Global Trade Research Institute, India's textile and apparel exports to the U.S. fell 9.8 per cent to $4.0 billion between April and August, while shipments to other markets rose 3.7 per cent to $15.2 billion.
- Major exporters like Gokaldas Exports and Orient Craft are shifting focus to European markets, aiming to raise revenue shares as India-UK trade deals and potential EU agreements offer duty-free access, eliminating duties of 12 per cent to 17 per cent.
- Diversification is becoming a structural strategy rather than a temporary shift, as the Indian textile industry leverages a 10 per cent efficiency advantage in locations like Ranchi to build long-term resilience against export uncertainty.
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India garment makers rethink reliance on US after tariff shock
Many Indian companies are reconfiguring their export destinations, and their exposure to the US, in light of the tariff shock, in a move that is likely to strengthen New Delhi's hand in its trade negotiations with Washington, and potentially reduce India's vulnerability to US pressure over time.
·India
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Indian Garment Makers Rethink US Dependence After Tariff Shock
Indian garment manufacturers are reducing their dependence on the United States following tariff increases that disrupted export orders and squeezed profit margins. Companies such as Orient Craft, which previously sent 84% of its sales to the US, are now expanding into Britain, Europe and India’s domestic market. The company has reduced its US exposure to […]
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Total News Sources6
Leaning Left0Leaning Right3Center2Last UpdatedBias Distribution60% Right
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- 60% of the sources lean Right
60% Right
C 40%
R 60%
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