Indian Textile Industry on Edge as US Tariff Threat Raises Fears of Trade Freeze
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The Indian textile and garment sector is entering a phase of deep unease following a sharp warning from United States President Donald Trump about a possible 500 percent tariff on imports from countries that continue to buy Russian oil. The statement has already rattled financial markets, triggering a noticeable fall in the share prices of Indian exporting firms and reviving fears of severe trade disruption. For an industry heavily dependent on the US market, the threat has created a climate of uncertainty that extends from factory floors to boardrooms.
Concern is most visible in Tiruppur, Tamil Nadu, widely regarded as the backbone of Indias knitwear exports. The cluster contributes close to ninety percent of the nations knitwear shipments, and exporters there fear that such an extreme tariff could choke demand almost overnight. If implemented, the proposed levy would be stacked on top of the existing fifty percent duty imposed last year, pushing landed costs of Indian goods in the US to unsustainable levels and making price competitiveness nearly impossible.
Trade experts warn that the impact could go far beyond garments. Analysts suggest that a tariff of this scale, combined with potential secondary restrictions on services, could effectively freeze Indias exports to its largest overseas market. Industry leaders point out that even the current tariff regime has already forced exporters to slash margins, divert shipments through neighboring countries and explore alternative destinations with limited success.
The United States accounts for nearly thirty percent of Indias garment exports, making it a critical pillar of sector growth. While apparel exports have shown marginal resilience, textile shipments have already weakened in recent months. Many fear that a five hundred percent tariff would operate less like a trade barrier and more like an embargo, placing jobs, investments and long built supply relationships under serious strain.
04:03 PM, Jan 12
Source : Indian Textile Industry on Edge as US Tariff Threat Raises Fears of Trade Freeze
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