US President Donald Trump has already slapped a 25% levy on Indian products, but now he is threatening to pile on an additional 25%. For Indian textile exporters, this could be devastating.

Noida

Donald Trump has signed an order to impose tariffs imports into the U.S. from countries including China, Mexico and Canada.

Global Tariffs

Indian textile businesses are facing significant challenges following the announcement of a proposed 50% tariff on textiles imported to the United States. Small business owners, such as Aashish Kushwaha and Nitin Pratap, report that many export orders have been suspended, directly affecting their revenue and the job security of their workers. 

India is a major exporter of garments to the US, with the sector supporting hundreds of thousands of workers, many of whom rely on daily wages. The uncertainty caused by the tariff threat has led entrepreneurs to consider cost-cutting measures, including layoffs and downsizing, as they struggle to maintain their operations and support their employees.

India's textile industry threatened by new U.S. tariffs

Aashish Kushwaha runs a modest garment workshop with seven workers and is heavily dependent on orders from export houses shipping to the US. In May this year, Aashish dipped into his savings to buy this needlework machine, worth nearly 5,000 euros. His dream was simple, expand his business to include embroidered clothes for export to the United States. But the USS threat of a 50% tariff on textiles imported from India has dashed his plans. Many export orders are on hold right now because of this tariff announcement. 50% of my earnings come solely from such orders. So I'm worried about what will happen. I have to pay workers too. With no plan B, Aashish is bracing for the worst. I will have to let some people go to cut my expenses. I will also need to move to a smaller place perhaps to save on rent. India is one of the world's top textile exporters. In 2024, it shipped some 10.5 billion dollars worth of garments to the US alone. The huge market has also drawn in new entrepreneurs like Nitin Pratap, who just secured his export license. But his very first big order, also from the US, has been put on hold. With more tariffs, the cost of the garments will shoot up, which will eat into our profit margins. It won't leave us enough money to source more raw material for other orders from fabric vendors. It will have a big impact. Like Aashish, his concern is also for his workers. About 200 of them. Like Kalavati, who cuts fabric here at Nitin's workshop. I have been doing this work for five years. This is how I earn and feed my family. Here in Noida, India's city of apparel, an entire ecosystem is in turmoil. There are hundreds and thousands of workers here in this industry. They live a hand-to-mouth existence, and they have to earn every day to eat. Aashish and Nitin, both first-time entrepreneurs and the first in their families to own businesses, now meet often to prepare for what's ahead. They've poured years of sweat and savings into businesses that sustain hundreds of workers and their families. Their future is now hanging very much in the balance. you

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India's textile industry threatened by new U.S. tariffs

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