"US textile buyers halt orders from India as 25% tariffs kick in" 8 August 2025

The Indian textile industry has started facing the heat of US tariffs. With the first tranche of 25% tariffs coming into effect on August 7, the US buyers of textile goods from India have paused lifting goods and have also put on hold new orders.

Experts and industry executives DH spoke to, underscored the distress this has created in the sector. Textile majors like Gokaldas Exports are exploring diversification options, including building manufacturing facilities across continents and exploring newer markets. They are also hoping that the Free Trade Agreement (FTA) with the UK will come to their rescue.

...Premal Udani, Past Chairman, Apparel Export Promotion Council (AEPC) and Managing Director, Kaytee Corp Pvt Ltd, said, “This is an existential crisis for the apparel and textile industry. Current effective duties along with additional tariffs is approx 40% which will go up to 65% post August 27. The US buyers have paused the lifting of goods and have also put on hold new order placements. We hope that the current impasse is resolved as early as possible otherwise the industry is looking at order cancellations/ factory closures and many other consequences thereof.”

Players such as Gokaldas Exports feel their Africa business might be at an advantageous position with 10% US reciprocal tariffs on both Kenya and Ethiopia, and are working towards an active engagement with clients on the same...