Apparel Export sectors to come out from the most affected situation arising out of US Trade Tariff issues.
Sir, your kind support not only help the industry but also help the working force from the job loss
Urgent Need for India-US Tariff Resolution to Protect Textile Exports
1. Issue for Consideration:
Recent US actions imposing 25% tariffs & an additional 25% oil-related penalty on imports are causing severe disruption to textile exports, particularly to the US-India's largest export market
Without quick resolution, the sector faces order stoppages, job losses/loss of market share.

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2. Sector Exposure & Constraints:
US market accounts for~ 70% of exports for large Indian textile exporters
Industry characteristics:
-4 months Work-in-Progress
-6 months product development & order cycle
-30% wage cost, largely fixed
Textile exports operate on low margins, leaving no capacity to absorb tariff shocks

3. Industry Response So Far:
-To retain US customers, production continuity, exporters have:
-Absorbed 25% price reduction equivalent to oil penalty
-Decision taken in anticipation of early India-US tariff/treaty resolution.
Impact:
Profits wiped out l Reserves being depleted
Strategy viable only as a short-term bridge, not sustainable.

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4. Escalating Risk:
With threat of additional/prolonged tariffs:
US buyers are withholding/cancelling new orders
Buyers unwilling to risk mid-cycle tariff escalation
Even with 25% discounts:
Also tariff absorption is commercially impossible
Passing costs to buyers is unviable

5. Why Market Diversification Is Not a Short-Term Option:
Textile sourcing is embedded in longterm buyer supply chains.
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Developing alternate markets needs:
2-3 years for buyer onboarding, compliance audits & volume scaling.
Abrupt loss of US market will:
Lead to permanent customer displacement
-Allow competitor nations with preferential access replacing India

6. Consequences of Inaction Immediate:
Production cuts & factory shutdowns
Large-scale job losses
Mis-term:
Loss of export earnings and tax revenues
Structural weakening of the textile value chain
Long-term:
Irreversible loss of US market share

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7. Recommended Action:
-Immediate conclusion of India-US tariff treaty, or
-Interim tariff relief/ suspension mechanism until treaty finalisation
Even temporary relief will:
Restore buyer confidence
Protect ongoing WIP & export commitments
Prevent irreversible sectoral damage

Sustainability

8. Decision Sought:
Fast-track India-US tariff negotiations, and/or
Authorise interim protective measures for textile exports pending treaty conclusion.
Key Message
The textile industry has already absorbed significant losses in national interest to protect exports & jobs
There is no further shock-absorption capacity.
Delay of even 3-6 months risks permanent damage to a strategic export sector.
Sir, we request the above may kindly be referred to GoI for the necessary action & to support our vibrant Garment Sector .

CREDEITS: The text is directly received from AEPC India official id. The content has not been edited and reviewed by us.

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