CITI Flags 50% US Tariff As Major Blow To Textile Exports
The Confederation of Indian Textile Industry (CITI) has expressed deep concern over the latest US tariff hike on Indian textile and apparel imports, calling it a severe blow to the sector. The effective 50% tariff rate, announced on August 6, is expected to drastically weaken India’s competitiveness in its largest export market.
“This is a huge setback for India’s textile and apparel exporters,” said Shri Rakesh Mehra, Chairman, CITI. “It has further complicated the already challenging environment and will significantly hurt our ability to compete with countries like Vietnam and Bangladesh in the US market.”
In light of this development, CITI has urged the Indian government to swiftly introduce relief measures to support exporters and mitigate the fallout. After a promising start to 2025, India’s textile and apparel exports to the US slowed in June, growing just 3.3% YoY, far behind previous trends and the performance of competing nations.
The US currently levies 20% tariffs on imports from Bangladesh and Vietnam, and 19% on Indonesia and Cambodia, placing India at a clear disadvantage with the new 50% rate.
Highlighting the country’s US$ 100 billion textile export target by 2030, Mehra called for immediate action. “It is our fervent appeal to the government to urgently come to the aid of India’s textile and apparel sector during these hugely testing times,” he said.
CITI also emphasized the need for a balanced and strategic bilateral trade agreement (BTA) with the US. “A well-rounded BTA, which protects India’s sovereign interests while fostering fair trade, could be a win-win for both nations,” Mehra added.
