Tariff Turmoil: India's Apparel Industry Faces a Crossroads

Donald Trump's recent tariffs on India have put apparel exporters in a difficult position, as U.S. clients demand cost-sharing or shifting of production out of India. Companies like Pearl Global are exploring alternatives in Bangladesh, Vietnam, and Ethiopia to bypass hefty tariff burdens and sustain business.

With Donald Trump's latest tariff imposition on Indian imports, garment exporters face mounting pressure from U.S. clients. Companies such as Pearl Global, which supplies major U.S. brands like Gap and Kohl's, have been inundated with requests to either absorb the tariff impact or relocate production.

India's garment sector, which once saw the U.S. tariff proposals as a growth opportunity, is now facing the specter of a steep 50% levy. This has disrupted plans and forced companies to consider shifting operations to countries like Bangladesh, Vietnam, and Ethiopia, where tariffs are significantly lower.

The new tariffs have left exporters scrambling, putting orders on hold and exploring new manufacturing bases. The economic blow not only challenges India's apparel market but also poses a threat to the 'Make in India' initiative. Key industry figures express concerns over future investments to sustain U.S. market relationships.

(With inputs from agencies.)