Archive · 20 Aug 2025
US Tariffs Cause Setback for Indian Textile Exports
The US has increased taxes on goods from India, making them more expensive.
This is causing problems for textile businesses in Ludhiana, India, who sell to the US.
They are having trouble getting paid and may have to cut jobs.
Some companies are looking for help from their government and trying to sell their products in other countries.
US tariffs on Indian goods have increased to 50%.
Ludhiana textile units are facing shipment holds from US customers.
Companies are experiencing cash flow issues due to delayed payments.
Potential job losses are a concern for the textile industry in Ludhiana.
Textile units seek government support and are exploring new markets.
- Who
- Indian textile units, US customers, and the Indian government.
- What
- US tariffs impacting Indian textile exports.
- When
- 50% tariffs taking effect around August 27.
- Where
- India and the United States, specifically Ludhiana.
- Why
- US imposed tariffs, affecting trade.
Challenges for Textile Units
Solutions
Impact of Tariffs
Challenges for Textile Units
Increased tariffs stall shipments, squeeze cash flow and lead to possible layoffs.
Solutions
Exploring alternative markets and seeking government support to mitigate impacts.
- US Tariff Rate
- 50%
- Affected Industry
- Textile
- Textile Units in Ludhiana
- Approximately 30% exposed to the US market
- Potential Job Losses
- 20-25% in textile-related jobs if situation doesn't improve
Sources
US Tariffs Impact on Indian Exports: Wheels India MD Srivats Ram Explains
Centre taking steps to mitigate impact of US tariffs: Prasada
Seafood exporters seek Centre’s help
MSMEs in textiles, diamonds and chemicals to be most hit by US tariffs: CRISIL Intelligence
Impact of US tariffs: India can boost exports to other nations and take usage of UK FTA opportunities
Trump tariffs may hit nearly 60% of India’s exports: Govt says $48.2 bn of shipped goods vulnerable
Centre removes import duty on raw cotton till September 30
