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Navigating Tariff Uncertainty: Implications of the 90-Day Pause on U.S. Duties and the Future of India’s Textile Sector
As global trade faces renewed turbulence, President Trump’s recent 90-day moratorium on reinstated U.S. tariffs offers India’s textile exporters a temporary reprieve—and a strategic crossroads.
This article examines both the immediate window of opportunity and the longer-term challenges that will determine India’s resilience and competitiveness in the world’s largest apparel market.
The 90-Day Pause: A Tactical Breather, Not a Policy Reversal
President Trump’s announcement of a 90-day moratorium on new U.S. textile duties provides a crucial—though temporary—window for Indian exporters.
It offers:
Immediate Relief: Exporters can fulfill pending orders without absorbing sudden cost increases.
Supply Chain Continuity: U.S. importers can restock shelves in time for peak seasons without recalibrating cash flows or renegotiating terms with exporters.
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Order Acceleration: Anticipating future tariffs, U.S. buyers may front-load shipments.
Policy Advocacy Window: Governments and industry bodies can lobby for long-term tariff rationalization.
Yet caution is warranted, as whenever there is uncertainty, people freeze decisions!
Given the volatile nature of U.S. policy under the current administration, the moratorium may be shortened or reversed based on new developments.
Will India be net beneficiary?
Indian firms must avoid complacency and act with urgency—consolidating buyer relationships, enhancing operational agility, and preparing for varying tariff scenarios.
CREDITS: Sanjiv Mehan, Professor at PIET, is a textile expert with 40+ years' leadership experience, specializing in strategy, policy, sustainability.