"Over 2 million jobs at risk in apparel manufacturing sector due to Trump tariff", 3 August 2025

The Indian apparel and textile industry is facing a potential crisis with the latest tariff rates announced by the U.S. government, which industry leaders warn could lead to over 2 million job losses and a significant downturn for the sector.

The new US tariff rate for India has been set at 25%, placing it at a significant disadvantage against major competitors like Bangladesh and Vietnam, which have been placed in lower tariff brackets of 20%. Indonesia and Cambodia have an even lower rate of 19%...

The US is the top destination for garment exports from India occupying 33-34% of share, having exports worth $5.333 billion in 2024-25...

The Confederation of Indian Textile Industry (CITI) expressed serious concern, stating that the new tariff structure compounds an already challenging situation...

The industry's concerns are echoed by the Apparel Export Promotion Council (AEPC). Mithileshwar Thakur, AEPC’s secretary general, noted that the new tariffs "changes everything."...

Thakur warned that if the current tariff rates persist, the apparel manufacturing sector alone could face major losses resulting in a massive wave of unemployment. " The US market is very price sensitive because it is primarily a core product- driven market. If these reciprocal tariff rates persist, the apparel sector in the country could face major job losses."...