US President Donald Trump on Wednesday slapped an additional 25 per cent tariff, raising the total duties to 50 per cent on goods coming from India, as a penalty for New Delhi's continued purchase of Russian oil. Domestic export sectors such as leather, chemicals, footwear, gems and jewellery, textiles and shrimp will be severely impacted by the imposition of the 50 per cent tariff by the US, say industry experts.
Source: The Economic Times
Apparel, Textiles, Diamonds, gold, Carpets, Organic chemicals, furniture, shrimps, machinery and mechanical appliances are among the sectors that will be the most affected by additional 25% tariffs imposed by the United States of America. With this hike, the cumulative tariff on India adds up to 50%. This additional 25% tariff will come into effect from Aug. 27, as per the order. Apparel (knitted) products, which account for 34.5% of US share in India's exports, face the highest total tariff payable at 63.9%, followed by apparel (woven), with a 32.2% US share in India's exports and a total tariff payable of 60.3%. Textile (made-up) products, with a 48.4% US share in India's exports, are subject to a total tariff of 59%, followed by organic chemicals with a 13.2% US share in India's exports will see a total tariff payable at 54%. Meanwhile, carpets, which have a 58.6% US export share and a total tariff payable of 52.9%, followed by furniture which account for 44.8% of US share in India's exports, face a tot
Source: NDTV
Indian textile and apparel industry players on Wednesday raised concerns over the revised US tariff and sought immediate government intervention, including renegotiations with the US or an immediate rollout of export incentives in cash to minimise the impact on exporters. Industry bodies also batted for speedy implementation of a bilateral trade agreement (BTA).
The US is India’s largest market for textile and apparel exports and had clocked around $4.59 billion worth of exports during the January-May 2025 period, up 13 per cent compared to the same period last year, when the figure stood at $4.05 billion.
Source: Business Standard
President Trump's trade actions against India, stemming from trade imbalances and Russian oil purchases, threaten to undermine decades of diplomatic progress. These measures, including tariffs and criticism, have strained relations, pushing India to reassess its partnerships. India faces pressure to balance its relationship with the U.S. while exploring ties with Russia and China, navigating a complex geopolitical landscape.
Source: The Economic Times
US tariffs on India, potentially reaching 50%, pose a significant threat to labor-intensive sectors like gems, textiles, and leather, potentially impacting hiring. Experts warn of a possible drag on India's FY26 GDP growth, potentially falling below 6%. The increased tariffs are also expected to exert downward pressure on the rupee.
Source: The Economic Times
The government plans to update the base years for key economic indicators. The Index of Industrial Production (IIP) and Gross Domestic Product (GDP) will shift to a 2022-23 base year, while the Consumer Price Index (CPI) will be rebased to 2024.
Source: The Economic Times
David Kohler, CEO of Kohler Co., expressed hope that India and the US would resolve ongoing tariff tensions, calling both nations "historic friends and trading partners." While current tariffs do not affect Kohler’s India operations directly, they may influence export destinations from its India plant. India is among Kohler’s top three global markets and the fastest growing one.
Source: The Economic Times
Trump tariff impact: Shares of several textile companies, including Gokaldas Exports, Kitex Garments, KPR Mill, and Alok Industries, declined sharply on Thursday after US President Donald Trump announced an additional 25% tariff on Indian goods. The latest move brings the total tariff burden on Indian exports to 50%. Kitex Garments share price extended its losing streak to the 11th consecutive session and was locked in the 5% lower circuit for the third straight day. KPR Mill shares plunged 6.18%, while Gokaldas Exports shares fell as much as 3.86%, and Indo Count Industries stock price dropped 3.15%. Welspun Living and Pearl Global Industries declined 3.7% each. Gokaldas Exports derives nearly 70% of its total revenue from the US market. Indo Count Industries has a similar exposure, while US sales contribute about 65% and 50% to the revenues of Welspun Living and Pearl Global Industries, respectively.
Source: Mint
Prime Minister Narendra Modi on Wednesday praised Union Minister of State for External Affairs Pabitra Margherita for highlighting the growth of the textile sector in India. Sharing Margherita’s article on his X handle in this regard, the prime minister said; “Union Minister of State for Textiles, Shri @PmargheritaBJP, writes about the growth of the textile sector in Bharat. He explains how, by weaving together heritage, innovation and collective effort, India’s handloom sector stands poised to inspire the world. Do read!”
Source: The States Man
Indian Institute of Science (IISc) has developed 'SaLSO,' a groundbreaking technology to recycle multi-layered plastics and synthetic textiles, often deemed unrecyclable. This patented process uses seawater and bio-acids to separate and recover materials with over 99% yield. It upcycles polymers into high-value applications, enhancing lower quality plastics. With industrial trials in the pipeline and conversations ongoing with potential partners, IISc hopes to bring SaLSO to market soon. If widely adopted, the technology could radically expand the boundaries of what’s considered recyclable, bringing circular economy principles to industries that have long lacked them.
Source: Times of India
Indonesia’s export commodities, including textiles, will enjoy zero tariffs under the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA), the country’s Ministry of Trade announced recently. Apparel will receive zero tariffs during the entry into force (EIF) phase. Footwear, apparel, textiles, processed foods, palm oil and its derivatives will all benefit from EIF, the ministry's director general of international trade negotiations Djatmiko Bris Witjaksono said. The IEU-CEPA covers market access for goods, with both parties committing to eliminating tariffs on 98 per cent of the total tariff items and 99 per cent of the total import value, he was cited as saying by a domestic news agency. He explained that several products like footwear, textiles and textile products have optimal market access due to comparative advantage.
The agreement comprises 25 chapters covering liberalisation, trade facilitation, cooperation and emerging issues. Under the IEU-CEPA, around 80 percent of tariff lines will be eliminated, offering broader trade and investment opportunities for both parties.
Source: Fibre2fashion
