Overview

• The White House announced on Aug. 6 that total tariffs on Indian garment imports will rise to 50% from Aug. 27, citing India’s purchase of Russian oil.
• Companies including Pearl Global are shifting US-bound production to Vietnam, Indonesia, Bangladesh, Guatemala and Africa to sidestep higher levies.
• Major textile clusters in Tamil Nadu, notably Tiruppur, have paused orders and production, estimating up to Rs 6,000 crore in affected exports.
• Exporters are leveraging free-trade agreements with the UK, Japan and Australia and advancing planned capital investments in Bangladesh to diversify market risk.
• Analysts believe India’s large-scale capacity, skilled workforce and new trade pacts could help it reclaim US market share once duties ease.