Rollback of US Tariff: The unforeseen duty of a 50 corrective US tariff has posed an unknown challenge to the Indian cloth and apparel assiduity, which accounts for nearly 29 of total US cloth and vesture significances. As the alternate- largest employment provider after husbandry, supporting over 110 million livelihoods, particularly the pastoral communities and women, the sector has traditionally depended heavily on the US request and was anticipating the early conclusion of a Bilateral Trade Agreement between the two Nations, which had been progressing on a fast track.
Rollback of US Tariff
The abrupt tariff hike has not only disintegrated India’s manufacturing value chain but has also negatively impacted US consumers and importers through advanced costs and force misgivings. Textile and apparel exports to the US, amounting to around USD 11 billion, account for nearly 29 of India’s total T&C exports, emphasizing the request’s critical significance to the sector.
The assiduity is now poised to achieve a sustained double- number growth rate in the coming times, aligned with the Hon’ble Prime Minister’s vision of erecting a Viksit Bharat by 2047. With strong policy support, enhanced request access and continued investments, the cloth and apparel sector aims to expand to a domestic request size of USD 1.8 Trillion and achieve import earnings of USD 600 Billion, situating India as a global leader in the cloth value chain.
In a press release issued Mr. Durai Palanisamy, Chairman of SIMA, expressed his sincere gratefulness and appreciation to the Hon’ble Prime Minister and the Hon’ble Minister of Commerce & Industry for successfully concluding two corner trade deals within a week, in addition to publicizing game- changing policy measures for the cloth assiduity in the recent Union Budget 2026 – 27.
Durai has stated that exporters generally dependent on the US request, particularly those in Tamil Nadu, faced a severe extremity following the tariff hike. product situations declined by 30 – 70 across several units, rendering around 10 lakh workers unemployed and egging the Government to advertise a relief package to alleviate the unlooked-for dislocation.
He has further noted that US buyers began shifting their sourcing to contending countries similar as Pakistan, Bangladesh and Vietnam, posing a serious trouble to India’s import competitiveness and request share in the US cloth and vesture member.
Durai has also thanked the Hon’ble Chief Minister of Tamil Nadu for recommending the assiduity’s enterprises to the Hon’ble Prime Minister and for extending full support toward securing an amicable trade deal with the United States. Mr. Durai has appreciated the unstinted sweats of the Hon’ble Prime Minister, the Hon’ble Minister of Commerce & Industry and the Hon’ble Minister of fabrics for their visionary engagement in prevailing the US President to roll back the corrective tariff. He has further noted that the reduction of the tariff to 18 would significantly enhance the global competitiveness of Indian cloth exports and restored confidence across the assiduity.
SIMA Chairman stated that the 18 tariff is the smallest rate negotiated by any T&C import contending country with the United States, reflecting the Government of India’s strong politic and trade sweats. He noted that India has successfully concluded trade agreements with three major global husbandry and
requests( i.e) the US, the UK and Europe, piecemeal from several other countries and is steadily moving towards securing preferential or free request access across utmost crucial transnational requests. These strategic enterprise are anticipated to spark a significant swell in demand, strengthen import instigation and place the country on a advanced and further sustainable growth line.
