India: Garment hubs Gurgaon & Noida facing pressure to absorb 20-30% tariff costs & accept discounts following US tariff hike
"Garment hubs of Gurgaon & Noida brace for uncertain times" 28 August 2025
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The implementation of a 50% tariff by US President Donald Trump has thrown the industry into disarray, leading to halted orders and intense negotiations.
...exporters are grappling with the challenge of absorbing additional costs, a situation that could have dire consequences for employment in an already vulnerable sector.
Gurgaon and Noida, home to some of India’s leading garment exporters, are now in a state of flux. The region makes products for a plethora of well-known brands, including Target, GAP, Tommy Hilfiger, Ralph Lauren, Macy’s, Zara, and Walmart...
Ramandeep Singh from Boutique International told ToI of potential closures and job losses. He revealed that buyers are now pressuring exporters to absorb 20-30% of the additional costs, which is unsustainable in the long run...
Visharad Gautam, a member of the Indian Industries Association, told the newspaper that while previous orders had been shipped before the tariffs took effect, the immediate impact is being felt in raw material bookings. A slowdown in bookings may soon translate into production halts, jeopardising the livelihoods of many in this labour-intensive industry...
Vikash Gupta from the Manesar Industry Welfare Association reported an influx of calls from buyers requesting discounts, indicating the seriousness of the market's predicament. He described his business as being “on a ventilator,” underscoring the precarious nature of the current climate...
Satvir Singh, vice-president of CITU Haryana, called for immediate government action to protect jobs. He warned that if layoffs become widespread, it could lead to protests akin to the farmers' agitation, reflecting the deep-seated frustrations of workers facing uncertainty.