India’s export hubs for readymade garments are facing intense heat since the 50% tariff announced by the United States took effect. The tariffs come at a time when the festive season is about to begin in India. The move has sent shockwaves across Tiruppur, Noida, Ludhiana and other textile clusters, where exporters supply everything from sequined tops to polo shirts, resort wear and kaftans to global brands in the US.

The immediate fallout has been telling; several buyers have halted fresh orders while others are pressing exporters to absorb part of the higher duties. With margins already squeezed by rising input costs, many small and medium-sized units find themselves on precarious ground.

Yet, amid the prevailing gloom, one exporter is quite content. Vasant Marimuthu, founder and CEO of Teestra Lifestyle, has doubled down on his US business. His company, which specialises in custom T-shirts and small-batch apparel for businesses, is preparing to ship samples to American clients unfazed by the duty hike. 

Taking to social media, Marimuthu wrote, “Hello Mr. Trump — We are ready with our next sample shipment to USA. Our customers in US are OK with the additional tariff. That’s the value we bring into our merchandise. Thank you for your attention to this matter.”

Uncertainty glooms over export worth billions

India is the sixth-largest exporter of textiles and apparel globally, with shipments worth $34.4 billion in FY24. Nearly half of these exports are destined for the US and EU markets, making Trump’s additional 25% tariff particularly damaging. India produces nearly 22,000 million pieces of garments annually, with employment across the value chain running into millions.

India’s response to Trump tariffs

The Indian government has responded with defiance. Commerce Minister Piyush Goyal on Friday said New Delhi would not “bow down” to US pressure and would instead accelerate efforts to tap new markets. 

“India is always ready if anyone wants to have a free trade agreement with us. But we will neither bow down nor ever appear weak,” Goyal asserted.

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US court calls Trump tariffs unlawful

Notably, a US federal appeals court in Washington, DC, on Friday ruled that most of the tariffs imposed under Trump’s emergency powers were unlawful. The judgment, though not directly linked to India’s case, could complicate Washington’s legal position on the sweeping duties.

For now, exporters remain caught between shrinking orders, anxious buyers and political grandstanding.