CHENNAI: The textile hubs of Tiruppur and Surat have expressed relief after US President Donald Trump announced a reset of import tariffs on Indian goods, reducing the effective rate to about 18% and removing the additional 25% levy imposed over India’s purchase of Russian oil.
However, exporters of textiles and consumer products have sought clarity on product-wise tariffs and whether the revised levies would include the pre-April duty of 16%.
KM Subramanian, president of the Tiruppur Exporters’ Association (TEA), said, “We are happy with the reduction of the US tariffs after the phone call between Trump and Prime Minister Narendra Modi. This is the lowest among the countries that export apparel products to the US.”
As of now, exporters said the US import levy appears to include the new tariff of 18% along with an import duty of 17%, though clarity is still awaited on the final structure.
It may be noted that Bangladesh, Vietnam and Malaysia are among the major exporters of textile and apparel products to the US, and these countries were levied tariffs in the range of 19% to 20% by the US in April.
Raja M Shanmugham, past president of TEA, said, “The countries all over the world have realised the importance of conducting trade with India. In this disturbed and uncertain geopolitical and geoeconomic condition, this is a sense of relief for us. We will be able to export without any pressure now.”
Nikhil Madrashi, president of the South Gujarat Chamber of Commerce and Industry (SGCCI), said, “Now, India is at an advantage as, during the course of the US tariff imposition, we have found alternative markets for our products like textile and diamond. This will benefit India in the long term.”
Haresh Calcuttawala, founder and CEO of Trezix, said, “The recent US tariff reset to about 18% gives Indian exporters immediate relief, while the India–EU Free Trade Agreement is set to make a lasting impact. This rate is comparatively more favourable than those applied to some peer countries, and immediately enhances the landed-cost competitiveness of Indian exporters in the US market, particularly in labour-intensive sectors such as textiles, leather, and seafood.”
Manufacturers, however, said greater clarity was needed on tariffs applicable to individual products. K Rathnam, whole-time director and CEO of Milky Mist Dairy Food Ltd, said, “The conclusion of the India–US trade agreement and the associated tariff realignment is a constructive policy development for Indian exporters, including the value-added dairy segment. Greater clarity on tariffs helps create a more predictable trade environment for products such as cheese, ghee and specialised dairy ingredients.”
