Archive · 10 Aug 2025
Indian Apparel Exporters Pivot to UK, EU Amid US Tariff Hikes
The US is increasing taxes on clothes and textiles from India.
Because of this, Indian companies are worried.
To deal with this, they're looking at selling more to the UK and Europe, where it's cheaper.
Some are also moving their factories to other places, like Africa, to avoid the extra taxes.
Big companies like Raymond, Gokaldas, and Pearl Global are making these changes to stay competitive and keep selling their products.
US tariffs threaten Indian textile and apparel exports, prompting a shift in strategy.
Exporters are targeting the UK and EU, leveraging free trade agreements to offset losses.
Companies are shifting production to hubs in Africa, Latin America, and Southeast Asia.
Raymond Group, Gokaldas Exports, and Pearl Global are leading the diversification efforts.
The India-UK FTA offers advantages, boosting export potential.
- Who
- Indian textile and apparel exporters, US importers, and consumers.
- What
- Increased US tariffs on Indian textiles and apparel.
- When
- Tariffs announced recently by US President Donald Trump.
- Where
- United States and India, with production hubs in multiple countries.
- Why
- Unspecified, but part of the US trade policy.
Indian Exporters
United States
Economic Impact
Indian Exporters
Negative impact on export revenue and profit margins due to increased tariffs.
United States
Opportunity to diversify markets and production, and capitalize on FTAs to mitigate losses.
- Tariff Increase
- Doubling of duties on Indian goods to 50%
- Impacted Sector
- Textile and apparel exports
- Companies Adapting
- Raymond Group, Gokaldas Exports, Pearl Global Industries Ltd
- FTA Opportunity
- India-UK FTA
- Production Shift Locations
- Ethiopia, Guatemala, Vietnam, Indonesia, Bangladesh
Sources
Indian Diamantaires Likely to Shift Cutting, Polishing Work to Dubai
Tamil Nadus textile exporters to US choose wait and watch mode; some pause production
Tamil Nadu's textile exporters to US choose 'wait and watch' mode; some pause production
Government plans ₹2,250 crore push to help exporters counter Trump’s tariffs
Sectors at stake post Trump’s tariffs