Urgent need for immediate India-US tariff resolution to protect textile exports: Sakthivel

NEW DELHI: Hit hard by the steep 50 per cent tariff imposed by the US, the Apparel Export Promotion Council (AEPC) has sought immediate government intervention, saying the delay would lead to production cuts and factory shutdowns.

In a letter to Vice-President CP Radhakrishnan, Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said necessary action and support are required for the vibrant apparel garment industry.

He has stated that there is an urgent need to address the India-US tariff issues to protect the country's textile exports.


The US market accounts for about 70 per cent of exports for several large Indian textile exporters.

"Recent US actions imposing 25 per cent tariffs and an additional 25 per cent oil-related penalty on imports are causing severe disruption to India's textile exports, particularly to the US-India's largest single export market," the letter said.

Without immediate resolution, it said, the sector faces order stoppages, job losses, and permanent loss of market share.

It has added that textile exports operate on thin margins, leaving no capacity to absorb prolonged tariff shocks.

The tariff has "wiped out" profits and has resulted in depletion of reserves of units, it added.

The letter dated January 10 also said that the US buyers are either withholding or cancelling orders.

Even with 25 per cent discounts, the council said, further tariff absorption is commercially impossible and passing costs to buyers is also not viable.

The council has recommended the immediate conclusion of the India-US trade treaty.

"The textile industry has already absorbed significant losses in national interest to protect exports and employment. There is no further shock-absorption capacity. Delay of even 3-6 months risks permanent damage to a strategic export sector," it said.