50% US tariff on Indian apparel exports could be death knell for small firms: AEPC

New Delhi: Seeking immediate fiscal support of the government, apparel exporters body AEPC on Thursday said the doubling of tariffs to 50 per cent by the Trump administration on Indian goods will sound the death knell for micro and medium enterprises, particularly those heavily dependent on the American market.

Apparel Export Promotion Council (AEPC) Chairman Sudhir Sekhri said the announcement is a huge setback to the labour-intensive export industry.

"There is no way the industry can absorb this. I am sure the government also realises that this unreasonable increase in tariff will sound the death knell for the micro and medium apparel industry, especially those who majorly sell to the US market, unless the government steps in with direct fiscal support to the industry," he said.


The US is a key market for Indian ready-made garment exports. America accounts for 33 per cent of India's total garment exports in 2024.

In 2024-25, India's exports to the US from this sector include apparel-knitted (USD 2.7 billion), apparel-woven (2.7 billion), and textiles, made ups (USD 3 billion).

"India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024 and ranks fourth among the top RMG exporters to the United States," Sekhri said.

On August 6, Washington announced an additional 25 per cent tariff on all Indian imports, on top of an existing 25 per cent duty, taking the total to 50 per cent from August 27.

The White House said the measure responds to India's continued purchase of Russian oil.