"Trump tariff wars: Home textile orders worth $ 2 bn in limbo", 17 April 2025

Home textiles and made-ups, used for furnishing and decorating households, is the worst hit segment in the textile industry, with at least $2 billion (Rs 17,094 crore) worth of orders either being subject to negotiations or put on hold, according to the HomeTextile Exporters Welfare Association (HEWA)...

However, home textiles is the worst hit because at least 60 percent ($6 billion) of the total $10 billion worth of exports goes to the United States. The garments segment, on the other hand, exports about 28 percent ($4 billion) to the US.

Emails from US buyers to Indian suppliers, reviewed by Moneycontrol, showed buyers threatening to cancel orders if not given a 50 percent discount...

“We have also informed the Union government that nearly 90 percent exporters have been impacted by this tariff issue in our segment. My company alone has been hit as orders worth $2 million are stuck” said Chauhan who manufactures and exports bathing accessories, rugs, carpets through Skier Export and Import Private Limited.

An exporter who did not wish to be named said it is probably now time for the home textiles sector to diversify its market...

Nevertheless, the garments sector is also currently reeling under similar pressure with negotiations ranging from splitting the 10 percent baseline tariffs to a demand to subsume all of it in the contracted price.

“The garment industry’s profitability is typically at a very thin margin level. It is difficult for an exporter to realistically absorb the entire 10 percent. Negotiations are going on and discounts are being given on a case to case basis,” said Rahul Mehta, chief mentor at Clothing Manufacturers Association of India (CMAI) and Managing Director of Creative Garments Pvt. Ltd.

Mehta said a growing worry within the textile industry is how are American consumers going to react to the tariffs, in terms of a higher price for every product. “If their consumption goes down, then even if we offer the lowest costing goods, their overall consumption will go down and therefore, our demand will go down,” he said...