Union Textiles Minister Giriraj Singh will meet industry stakeholders next week to deliberate upon the potential impact of US President Donald Trump's announcement to impose a 25 per cent tariff on India and seek their views on the issue, according to sources. Discussions in the meeting will also revolve around realising opportunities arising for India's textile sector from the UK-India FTA, which was signed last month, as the government and industry want to leave no stone unturned to achieve the textile export target of USD 100 billion by 2030 and mitigate the potential impact of the US tariff announcement, sources told PTI.
While it would be "premature" to talk about any measures being considered to support domestic textile exporters in light of the US announcement, they said, the government wants to seek the industry's feedback at this juncture and discuss the challenges and opportunities in terms of the UK-India FTA and other markets with untapped potential.
Source: Business Standard
Indian exporters from various sectors, including food, marine, and textiles worried about the 25 percent tariff imposed by the US. They have requested the government for financial aid and affordable credit. Sectors like textiles, marine, and food may face challenges. US buyers are cancelling or holding back orders. This could lead to job losses and a decline in India's exports to the US.
Source: The Economic Times
India faces a potential USD 9-11 billion surge in its annual oil import bill if forced to abandon discounted Russian crude due to potential US tariffs and penalties. This shift threatens the profitability of Indian refiners and could lead to increased fiscal strain and inflation. While diversification to other sources is possible, it presents logistical, economic, and geopolitical challenges.
Source: The Economic Times
In response to the US imposing a 25% tariff on Indian goods, the government is urging exporters to develop homegrown brands and explore employment-linked schemes for sectors like marine products. Officials are also considering reducing testing charges for smaller exporters. The steep duty threatens a significant portion of India's exports to the US, particularly textiles.
Source: The Economic Times
The recently signed India-UK Comprehensive Economic and Trade Agreement (CETA) represents a significant win for India, showcasing its strategic negotiation. The deal offers the UK a crucial post-Brexit trade success, contrasting with its complex US relationship, and introduces a groundbreaking gender equality clause, reflecting India's evolving, holistic approach to trade.
Source: Financial Express
Union Minister G Kishan Reddy has underlined that the Centre, under Prime Minister Narendra Modi, has actively promoted the textile sector through the ‘Make in India’ programme and is implementing the ‘5F’ strategy: Farm to fibre, fabric, fashion, and foreign markets. The Modi government aims to increase this figure to Rs. 9 lakh crore by 2030. Additionally, comprehensive support is being provided through the Production-Linked Incentive (PLI) scheme. The Union Minister emphasised the crucial role of the handloom and textile industry in India’s economy, stating that it provided employment to millions and significantly boosted foreign exchange reserves. After agriculture, the handloom sector generated the most jobs, employing approximately 5 crore individuals, both directly and indirectly.
Source: The Hans India
Germany’s annual inflation rate stood at 2 per cent in July 2025, unchanged from the previous month, according to provisional data released by the Federal Statistical Office (Destatis). On a monthly basis, consumer prices rose by 0.3 per cent. Core inflation remained higher at 2.7 per cent. The Harmonised Index of Consumer Prices (HICP), used for eurozone monetary policy, increased by 1.8 per cent year-on-year and 0.4 per cent from June. A breakdown of key components showed a continued drag from energy prices, which fell by 3.4 per cent in July after a 3.5 per cent drop in June. In contrast, food prices rose slightly to 2.2 per cent from 2.0 per cent. Services inflation eased to 3.1 per cent from 3.3 per cent, while goods saw a modest price increase of 1 per cent.
Source: Fibre2fashion
Hit by higher US tariffs, Chinese exporters may redirect some of their goods from the United States to the euro area, and that could bring down headline harmonised index of consumer prices (HICP) inflation in the zone by around 0.15 percentage points in 2026, with smaller effects persisting into 2027, according to a blog by European Central Bank (ECB) experts. During the 2018 US-China trade war, such redirection resulted in euro area imports from China increasing by around 2-3 per cent between 2018 and 2019, they noted. Now, history could repeat. In a severe scenario in which US tariffs on Chinese goods escalate to an effective rate of around 135 per cent, the euro area could see imports from China rise by up to 10 per cent in 2026. A second estimate that uses general equilibrium models featuring production inter-linkages suggests a somewhat more moderate increase in euro area imports from China of 7-9 per cent, the blog said.
In addition, Chinese authorities have pledged targeted support to help affected exporters redirect sales to domestic or third markets, which could allow for further price cuts, it noted. Calculations by the ECB experts indicate that lower Chinese import prices would reduce overall import prices by 1.6 per cent. But it will take some time for consumer prices to drop. The magnitude of the effect depends on several factors, including the strength of domestic demand, the scale of the shock itself and the potential policy responses that may offset the disinflationary impact, the blog added.
Source: Reuters
