The US has extended the suspension of its April 2 reciprocal tariffs until August 1, a move which provides relief to Indian exporters and additional time for New Delhi and Washington to resolve pending issues to finalise an interim trade deal. India, which is negotiating a trade pact with the US, was not included in the list of countries that received tariff letters from the Trump administration on Monday. The Trump administration, on Monday, sent the first tranche of letters to various countries detailing the tariffs that the US will impose on products from those countries entering American markets from August 1.
Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Lao, Serbia and Tunisia are among the countries that received letters signed by US President Donald Trump. "...based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266 until 12:01 a.m. Eastern daylight time on August 1, 2025," the White House has said. This suspension was expiring on July 9. On April 2, the US President announced reciprocal tariffs against a number of countries, including India (26 per cent), but paused the implementation of these duties for 90 days, giving all trading partners a July 9 deadline to negotiate and reach a trade deal with Washington. Commenting on this decision, exporters said the deferment of the imposition of reciprocal tariffs from July 9 to August 1 reflects the US's willingness to engage constructively with its trading partners. "It provides an extended window for dialogue, which can help our negotiators to sort out remaining contentious issues," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said. He said that the proposed tariffs, covering a dozen countries, may provide India more comparative advantage if it finalises a BTA (bilateral trade
agreement) with the US, at least on goods, by the end of this month. Another exporter said that the decision will give relief to the domestic industry here as the Indian official team has got some 12-13 more working days to talk to their US counterparts on the interim trade deal. International trade expert Biswajit Dhar also said that it is a relief for India. "I see this as a relief for us and this response has come due to India taking a strong stand on certain issues." FIEO President and Ludhiana-based engineering exporter said though this is a small relief, "we are keeping our fingers crossed". Sharing similar views, Mumbai-based exporter and founder of Techno craft Industries (India) Sharad Kumar Saraf said that US President Donald Trump is "very unpredictable". "The period of tariff suspension is very small. Indian exporters should explore new markets to increase exports," Saraf said. India and the US are negotiating a bilateral trade agreement. They have set a deadline to conclude the first tranche by fall (September- October) this year. Before that, the two countries are looking to finalise an interim trade deal. According to officials, India has already made its stand clear to the US authorities on the interim trade deal and the ball is now in Washington's court. The US has been India's largest trading partner since 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.84 billion (USD 86.51 billion worth of exports, USD 45.33 billion of imports and USD 41.18 billion trade surplus).
Source: The Economic Times
Financial Services Secretary M Nagaraju on Monday urged fintech companies to promote financial inclusion and ensure consumer protection by building robust safeguards against fraud, hacking, and cyber threats using emerging technologies like artificial intelligence. "Fintech plays a pivotal role in advancing financial inclusion by extending essential financial services to underserved and unserved regions, thereby contributing significantly to India's growth narrative," he said, asking fintechs to focus their attention on payment solutions for offline payment, good connectivity coverage, and cross-border payments. Speaking at an event held by CII, Nagaraju highlighted the government's efforts in fostering a supportive ecosystem for fintech innovation, underpinned by a strong digital infrastructure and transformative welfare schemes.
Source: The Economic Times
Finance Minister Nirmala Sitharaman emphasized India's resilient economic strategy at the BRICS meeting, highlighting diversification, infrastructure growth, and structural reforms. She advocated for BRICS leadership in inclusive multilateralism amid global institutional challenges, urging cooperation and reforms.
Source: The Economic Times
India–Vietnam trade should reach $20 billion, Nguyen Thanh Hai, Ambassador of Vietnam to India, said on Monday in Kolkata. ‘Trade is an important pillar in our partnership, with bilateral trade reaching $15 billion. But if you look at the total volume of trade of each of the countries, it is a small proportion,’ the Ambassador said at a session organised by the Bharat Chamber of Commerce. ‘There is a lot of potential. We need to find a way to promote further trade with each other,’ he added.
Source: Business Standard
The Indian textile companies saw their shares surging in the morning trade on Tuesday after the US President Donald Trump slapped 35 per cent tariff on Bangladesh. Shares of textile firms such as Trident, Welspun, Gokaldas Exports, KPR Mill, Vardhman Textiles and Arvind Ltd. went up in the early trade. The stock of Gokaldas Exports were up more than 7 per cent while Vardhman Textiles shares rallied 7.4 per cent and Welspun Living's stock jumped two per cent.In a letter to Bangladesh's Chief Advisor Muhammad Yunus, Trump said that starting on August 1, 2025 “we will charge Bangladesh a tariff of only 35 per cent on any and all Bangladeshi products sent into the United States, separate from all sectoral tariffs.” “Please understand that the 35 per cent number is far less than what is needed to eliminate the trade deficit disparity we have with your country,” Trump wrote in the letter. He said that goods transshipped to evade a higher tariff will be subject to that higher tariff. The US President warned that if, for any reason, Bangladesh decides to raise its tariffs, then whatever number it chooses to raise them by will be added to the 35 per cent that the country charges. “Please understand that these tariffs are necessary to correct the many years of Bangladesh's tariff and non-tariff policies and trade barriers causing these unsustainable trade deficits against the United States. This deficit is a major threat to our economy and indeed our national security,” Trump noted.
If Bangladesh wishes to open its closed trading markets to the US and eliminate its tariff and non-tariff, policies and trade barriers, “we will perhaps consider an adjustment to this letter. These tariffs may be modified upward or downward, depending on our relationship with your country,” said US President.
In the US ready-made garment market, Vietnam holds a 19 per cent share, while Bangladesh accounts for 9 per cent. Trump has imposed 25 per cent tariffs on goods from Japan and South Korea, while 12 other nations received letters revealing the tariffs they will have to pay. He also said that the US “is very close to making a deal with India”.
Source: Free Press Journal
In the first four months of 2025, China’s textile companies with annual revenues exceeding 20-million-yuan (~$2.8 million) saw a 4.2 per cent year-over-year (YoY) growth in value-added output, reflecting steady performance, according to data released by the country's Ministry of Industry and Information Technology. However, the overall revenue of the sector declined slightly by 0.5 per cent, totaling 1.49 trillion yuan. In contrast, major retailers in the textile industry saw a 5.9 per cent increase in sales, reaching 6.4 trillion yuan. Exports of textiles and garments amounted to $90.5 billion during this period, showing a modest rise of 1.1 per cent YoY. Most textile companies are increasing their investments in research and development. These enterprises are focusing on innovating new materials and striving to position themselves higher in the international supply chain to maintain their competitive edge. Industry experts believe that despite global volatility and domestic challenges, the textile industry remains a crucial economic pillar with significant scale and employment, as per Chinese media reports.
Source: FIbre2fashion
Day-to-day business carries on despite the evolving schedule for President Trump’s tariff deadline, which as of today have been pushed back to Aug. 1 (depending on the country).
After all, shoppers are still buying new sheets and comforters and towels and bath rugs. Retailers are still putting products on the floor, even if they’re ordering more cautiously. Talking to suppliers last month as 2025 reached its mid-point, a few common trends emerged. Newness has largely been shunted aside. In part that’s because once the big 145% hike on China tariffs were proclaimed, orders and shipping ground to a halt. One manufacturer referred to it as “the day the earth stopped.” Even after the “pause” unfroze some of the China trade, suppliers and buyers have been more focused on getting their pricing right than developing up the next great hot item. That’s true regardless of which country the goods come from. The categories that seem to have experienced the least slowness have been everyday basics: bath towels, blankets and sleep pillows. This doesn’t necessarily mean those products are flying off the shelf, but the replenishments have been relatively steadier. Go-to attributes are not just “soft” but “softer” – along with cozy, comfy and cooling. Sets are seen as value drivers in top-of-bed and bath. And while product developers are pulling back on bells and whistles, they’re also bumping up quality levels to justify the hike in price points coming from tariffs. What remains to be seen is how shoppers will respond. Most consumers shop for bedding and bath only occasionally, so they may not realize that they’re paying $8 more for a poly-filled pillow than they did in 2022. But paycheck-to-paycheck consumers are more constrained. Will that $8 add-on be a deal killer?
The industry will get a better read on that in Q3 as the bulk of the tariff-laden goods begin to roll in. And suppliers are bracing for impact.
Source: Home Textiles
Indonesia recently proposed boosting imports from the United States by up to $34 billion as part of talks under way to secure relief from reciprocal tariffs. The proposal includes significant purchases of energy and agricultural commodities, as well as investment plans involving Indonesia’s sovereign wealth fund Danantara, the country’s coordinating minister for economic affairs Airlangga Hartarto said. “Earlier we discussed Indonesia’s plan to purchase US energy products, with a potential value reaching $15.5 billion,” domestic media reports cited Airlangga as telling a press conference in Jakarta. The target is to address US trade deficit with Indonesia, which currently stands at around $19 billion. The two sides are also exploring deeper collaboration in the mining sector, particularly in critical minerals. Danantara will play a strategic role in supporting these investment projects, many of which are expected to involve US partners, Airlangga added.
Source: Fibre2fashion
Following pilot tests, Bangladesh will begin its online system for paying export and import duties through automated challan (A-challan) starting today. The revised system allows customs duties to be paid directly to the government treasury. Pilot tests for the system were initiated in April this year at the inland container depot (ICD) of Kamalapur Customs House, and later expanded to the Pangaon Customs House. Chittagong Customs House became the third station to implement this system early this month. The A-challan system supports multiple payment modes, including internet banking, debit/credit cards, and mobile financial services such as bKash, Rocket, Nagad, Upay, mCash and Trust Pay, according to domestic media reports. System-generated receipt numbers are used to clear goods from the port. Alternatively, payment can be made at 11,700 branches of 61 banks via account debit or check clearing.
Source: Fibre2fashion
Morocco’s textile and clothing sector demonstrates measured resilience amid intensifying global competition, maintaining its eighth position among EU sourcing destinations with 7% growth in 2025. However, structural challenges reveal the urgent need for strategic transformation toward higher value-added production. Latest data from Eurostat and Morocco’s Foreign Exchange Office show the kingdom’s textile exports to the EU reached €881.7 million by April 2025, though this growth significantly trails Asian competitors. China leads with €7.88 billion (+24%), followed by Bangladesh at €7.54 billion (+25%), while emerging players like Cambodia surge 45% since 2023. Morocco’s heavy dependence on Spain remains evident, with exports reaching €526.1 million in April 2025 (+13%), representing over half of total EU exports. Traditional markets show concerning declines: France (-4%), Benelux (-17%), and Italy (-14%), while Germany (+24%) and Portugal (+27%) provide bright spots. The sector faces product-specific challenges, with labor-intensive items like t-shirts (+2%) and dresses (+3%) outperforming struggling segments including trousers (-11%) and pullovers (-17%). This disparity reflects partial market adaptation amid persistent structural weaknesses. A significant development emerged from the June 18 meeting between Morocco’s textile association AMITH and Hugo Boss CEO in Metzingen. The German luxury brand expressed clear intentions to strengthen its industrial presence in Morocco, seeking partners capable of meeting “high standards of quality, traceability, and performance.”
Source: North Africa Post
