Trump Tariff: India’s textile loss is gain for Pakistan, Bangladesh, Turkey, Vietnam, Egypt & Italy Indian exporters are

With the imposition of a 25 percent tariff along with an unspecified penalty by the United States, it is likely to severely impact India’s exports of textiles to the US market, and thus Pakistan, Bangladesh, Turkey, Vietnam, Egypt, and Italy would be the gainers, increasing their market share in the US.

Panipat, which is known as the `Textile City’ of India, has an export volume of around Rs 20,000 crore per year, the exporters here were already reeling from a downturn in exports for the past three years due to the Russia-Ukraine war, inflation across European and South American markets and rising freight charges.

They are now adopting a wait-and-watch policy and are holding back from taking new orders due to the prevailing uncertainty. Talking with this newspaper, Vinod Kumar, Chairman of the Haryana Chamber of Commerce and Industry (Panipat Chapter), said that the decision of the US to levy a 50 percent tariff on Indian goods has hit the textile industry of Panipat hard.

`"We export textiles worth Rs 20,000 crore per annum, and of this 60 percent (that is, Rs 12,000 crore) is exported to the US, from home textile items (bath beds, curtains, cushions, puffs, towels, blankets, and bed sheets) to floor covering items such as carpets and rugs," he says.