The Apparel Export Promotion Council has urged the Indian government to intervene urgently after the United States imposed steep tariffs on textile imports, warning that delays could lead to production cuts, factory closures, and job losses.
In a letter dated January 10 to Vice President CP Radhakrishnan, council chairman A Sakthivel said the apparel and garment sector was under severe stress following the imposition of a 25 percent tariff and an additional 25 percent oil-related penalty by the US. He said immediate action was needed to address India-US tariff issues and protect textile exports.
The US is the largest single export market for Indian textiles and accounts for around 70 percent of exports for several major exporters.
Sakthivel said the new tariffs have caused significant disruption, with US buyers withholding or cancelling orders. He warned that even offering discounts of up to 25 percent has failed to sustain orders and that further tariff absorption is commercially impossible.
The council said the industry operates on thin margins and lacks the capacity to absorb prolonged tariff shocks. Profits have been wiped out and reserves depleted, it added, raising fears of permanent loss of market share.
The letter said the sector has already absorbed substantial losses in the national interest to safeguard exports and employment. It recommended the immediate conclusion of an India-US trade treaty, warning that a delay of even three to six months could cause lasting damage to a strategic export industry.