Trump’s Signal of Tariff Easing Raises Hope for Indian Exporters

-

 

U.S. President Donald Trump’s recent remarks that the United States will “bring tariffs down at some point” for India have signaled a possible easing of trade tensions that escalated in 2024. According to Free Press Journal (2025), this statement followed India’s move to curtail Russian oil imports, a factor linked to the earlier round of steep tariff hikes.

Reaffirming India as a “very important” partner in the Indo-Pacific, Trump’s comments reflect a strategic recalibration in Washington’s trade posture (The Indian Express, 2025). While no formal directive or treaty update has yet been announced, the diplomatic tone marks a discernible thaw in bilateral relations after nearly two years of friction.

Trade Context and Sectoral Exposure

India continues to face some of the highest U.S. import duties across select product lines, including textiles and apparel. Reuters (2025) reported that tariffs on certain categories reached 45–50 percent following reciprocal trade actions between the two economies. These measures significantly constrained India’s export competitiveness in high-volume sectors such as ready-made garments (RMG) and home textiles.

The textile sector, contributing approximately 10 percent of India’s total exports and employing over 45 million workers, remains particularly sensitive to tariff changes. Even a partial rollback could re-energize export orders, restore price parity with competitors such as Vietnam and Bangladesh, and support India’s ongoing efforts toward market diversification and value addition.

Comparative Tariff Structure on Indian Textile Exports to the U.S.

HS CodeProduct CategoryAverage U.S. Tariff (2024)Proposed / Expected Range (Post-Cut)Remarks
6109T-shirts, singlets (knitted/cotton)32–34 %15–20 %Labour-intensive, price-elastic segment
6203Men’s suits, trousers (woven)40–45 %20–25 %Competes with Vietnam, Indonesia
6302Bed linen, table linen25–28 %10–15 %Strong Indian export base
6307Made-ups & furnishing articles30–35 %15–20 %High potential for margin recovery
5407Woven synthetic fabrics38–42 %20–25 %Key for man-made fibre diversification

Sources: WTO Tariff Profiles (2024), USTR Annual Report (2025), DGFT Trade Data Portal (2025).

Outlook

If tariff adjustments are implemented in phases, as experts anticipate, Indian exporters could experience incremental benefits within 6–12 months. The likely model would involve sector-specific relief contingent upon strategic cooperation and energy-trade realignment.

However, sustained competitiveness will also depend on domestic reforms—enhancing process automation, maintaining environmental compliance, and improving logistics to reduce non-tariff costs. Within this framework, India’s textile and apparel industries are positioned to be early beneficiaries of any policy softening, reinforcing their role in India’s broader export-led growth strategy.

References

  • Free Press Journal. (2025, November 10). Trump announces major tariff cut on India; trade tensions ease as U.S. signals positive shift in bilateral relations.
  • The Indian Express. (2025, November 9). United States–India trade deal: Trump signals tariff reduction and renewed engagement.
  • Reuters. (2025, September 18). U.S. may ease India tariffs, India’s chief economic adviser says.
  • World Trade Organization. (2024). World Tariff Profiles 2024. Geneva: WTO Publications.
  • Office of the U.S. Trade Representative. (2025). 2025 National Trade Estimate Report on Foreign Trade Barriers. Washington, DC.
  • Directorate General of Foreign Trade (DGFT). (2025). India Export Data Portal. Ministry of Commerce & Industry, Government of India.

Comments

Post a Comment

Popular posts from this blog

Global Textile Exports: RMG, Home Textiles, Technical Textiles, Fibres & Yarns — Structures, Leaders, and Tariff Impacts (2019–2025)

-
Image
  1. Scope and Significance The global textiles-and-apparel (T&A) sector spans fibres and yarns (upstream), fabrics, and finished goods—ready-made garments (RMG), home textiles, and increasingly, technical textiles . Collectively, the sector represented ≈ 3.7 % of world merchandise exports in 2022 , highlighting its structural role in industrialization and employment (World Trade Organization [WTO], 2024a). Asia anchors the supply base, with integrated production chains linking agriculture, chemistry, design, and logistics. 2. Global Structure and Recent Dynamics 2.1 Regional Concentration and Value-Chain Depth Asia’s share of world textile exports reached ≈ 70 % in 2022; China alone contributed over 40 % of sectoral value-added, reflecting full-chain integration (WTO, 2024a). Global merchandise trade rebounded modestly in 2025, though tariffs and supply-chain diversification redirected flows toward Europe and the Middle East (WTO, 2025; Reuters, 2025a; Reuters, 2025b). 2...
Read more

The Hidden Chemicals in Clothing: Why Every New Garment Deserves a Wash

-
Image
  Abstract Even the softest new clothes carry chemical residues from dyeing, printing, and finishing processes. Many of these substances—such as azo dyes, heavy metals, phthalates, and per- and polyfluoroalkyl substances (PFAS)—pose potential health and environmental risks. This article explains how such chemicals persist in fabrics, why infants and young children are especially vulnerable, and how both manufacturers and consumers can minimize exposure through safer materials, testing, and simple washing practices. Introduction Modern garments undergo complex chemical treatments for coloration, softness, and performance. From the bleaching of raw fibre to the final wrinkle-free or water-repellent finish, each step leaves behind trace chemicals. While regulations restrict some hazardous substances, no fabric is entirely free of residues. These residues can leach when garments are worn or washed, sometimes affecting sensitive skin or contributing to environmental pollution (Kant,...
Read more

Flat knitting

-
Flat knitting Synopsis : Flat knitting has reached new heights with Stoll and Shima Seiki machines. They offer precision and creativity, crafting intricate sweaters, scarves, and more. The seamless and sleek designs cater to modern fashion demands, making flat knitting a game-changer in the industry. Traditional craftsmanship meets cutting-edge technology for a bright and exciting future in fashion . The process of knitting is conducted using a flat machine, whereby the needles are organised in a linear configuration. In contrast to circular-knit fabric. In Industrial Knitting applications, the terms "Flat" and "Circular" have distinct meanings. A "Flat" or Vee Bed knitting machine consists of two flat needle beds arranged in an upside-down "V" shape, up to 2.5 meters wide. A carriage, also known as a Cambox or Head, moves across these beds, selectively knitting, tucking, or transferring stitches. Flat-knitting machines are highly flexible, allow...
Read more