AEPC warns 50% US tariff on Indian apparel could wipe out small exporters

The Apparel Export Promotion Council (AEPC) has urged the government to provide urgent fiscal relief after the Trump administration announced a tariff hike on Indian goods that will double duties to 50%. AEPC warned the move could devastate micro and medium enterprises, especially those reliant on the US market.

Calling the decision a major blow to India’s labour-intensive apparel export industry, AEPC Chairman Sudhir Sekhri stressed that the US is a critical destination for Indian ready-made garments, accounting for 33% of total garment exports in 2024.

In 2024–25, India’s shipments to the US in this segment include apparel-knitted worth USD 2.7 billion, apparel-woven valued at USD 2.7 billion, and textiles and made-ups worth USD 3 billion.

The tariff increase, announced on August 6, adds an additional 25% duty on all Indian imports to the existing 25%, raising the total levy to 50% from August 27. According to the White House, the move is in response to India’s continued purchase of Russian oil.