Fashion
Tariff pressure casts shadow on Gujarat’s textile landscape
Industry insiders are ringing alarm bells over the unfolding situation “There’s no way to absorb a 50 per cent tariff hike; we don’t have the margins,” claimed one industry player in conversation with Fibre2Fashion.
Many within the industry are worried that the abrupt increase in US tariffs could derail their businesses completely.
The duties on Indian textiles and apparel exports to US, across categories, will reach alarming levels.
Carpets will reportedly face a 52.9 per cent tariff, knitted garments 63.9 per cent, woven garments 60.3 per cent, and textiles & made ups 59 per cent.
In FY25, Gujarat’s export landscape was led by petroleum products at $43.9 billion, followed by engineering goods worth $16.6 billion, gems and jewellery at $8.3 billion, and textiles at $5.6 billion, as per some estimates. While textiles may not be the state’s top export, it is especially important due to the large-scale employment and deeply integrated supply chains that it supports. Now, with tariffs set to double—from 25 per cent to 50 per cent—industry players are bracing for the worst even as some expressed apprehensions that the abrupt increase in tariffs could derail their businesses altogether.
Reflecting the wider sentiment, an industry player explained that US shipments across the board have been put on hold while many well-established direct exporters are also struggling to keep operations running smoothly as shockwaves from the tariff hike spread through every link in the textile value chain. Mills, job work units, and raw material suppliers are already beginning to feel the heat, and if large exporters start losing orders, the consequences could cascade down to the smallest players in the ecosystem, creating a widespread disruption.
Order cancellations for US shipments are already piling up, media reports claim, and industry players confirm the slowdown is real—with no clarity on what lies ahead.
What compounds the issue further is the fact that the 50 per cent tariff is not a standalone levy—it is in addition to the standard import duty already in place in the US. Some estimates indicate that total duties on Indian textiles and apparel exports to the US will now reach alarming levels across various categories: carpets will face a 52.9 per cent tariff, knitted garments 63.9 per cent, woven garments 60.3 per cent, and textiles and made ups 59 per cent.
These figures illustrate just how uncompetitive Indian products will become under the new regime, effectively pricing them out of the US market.
In response to the emerging crisis, the Ministry of Commerce and Industry has reportedly begun reaching out to export-heavy states like Gujarat, Maharashtra, and Tamil Nadu, urging them to extend support to labour-intensive industries such as textiles. Simultaneously, the Central Government is reportedly working on a three-pronged approach to help exporters navigate the fallout from the US tariffs. One key component of this strategy involves the launch of a sector-specific support scheme under the proposed ₹2,250 crore Export Promotion Mission. The objective is to offer immediate relief to impacted sectors, while also identifying alternative international markets for redirected exports and encouraging domestic consumption of surplus products.
The Union Ministry of Textiles, for its part, has reopened the Production-Linked Incentive (PLI) scheme for the textile sector, inviting fresh applications from eligible entities. This decision came in response to growing appeals from the industry, which has been seeking urgent support to weather what many view as an existential threat.
The Government has also recently removed the 11 per cent import duty on cotton till September 30 this year, in a move to help the domestic textiles industry to deal with the US tariff issue.The decision, notified by the Central Board of Indirect Taxes and Customs (CBIC), is expected to lower input costs across the textile value chain encompassing yarn, fabric, garments, and made ups and provide much needed relief to manufacturers.
However, there is still scepticism within the industry if such interventions could help insulate it from the implications of high tariffs and long-term damage.
Fibre2Fashion News Desk (DR)
Published
August 28, 2025
Central London’s department stores continue to attract brands for pop-ups and permanent spaces with Selfridges, Harrods and Liberty all adding key names recently.
Luxury lifestyle brand Smythson of Bond Street has opened a new concession in the latter. It’s in Liberty’s homewares department on the third floor. The brand’s signature diaries, notebooks, and stationery, along with a selection of leather accessories and a curated edit of the brand’s bestselling bags are all on offer with personalisation also available.
The brands have developed an exclusive limited-edition range of Smythson x Liberty products with the first collection having just launched. There’s a selection of signature notebooks and diaries in Liberty Purple, Smythson’s Nile Blue, and a seasonal Coral colourway, each lined with a Liberty silk in coordinating colours. The second edit, launching in November, will feature a range of bestselling accessories.
Meanwhile UK-based padel apparel brand Pulco has debuted at Harrods, becoming the store’s first-ever padel clothing label, underlining the sport’s surging popularity.
Products on offer include the key Aircon shirt made from an ultra-lightweight, Italian-engineered fabric “featuring a breakthrough weave that rapidly wicks moisture from the inside out, delivering unrivalled breathability and comfort in play”.
But as well as performance-wear, there’s a full lifestyle offering “blending elevated athletic apparel with understated, off-court elegance”. That means shirts, shorts, hoodies, jackets, T-shirts, sweatpants, caps, socks and more. Retail prices range from £10 up to £165.
And back in the West End, Samsøe Samsøe has moved to a new space within Selfridges that presents the Scandinavian brand’s contemporary womenswear “within the universe of its experiential design”. The pop-up revolves around the AW25 collection that also inspires the space, “which emulates the immersive ‘Radiant Connection’ exhibition” that Samsøe Samsøe introduced the collection with during Copenhagen Fashion Week.
Set against the backdrop of the exhibition’s set design and illustrated by the lookbook imagery of the season, the pop-up “becomes illuminated with the lime green shade that defines the visual identity” of the collection.
The brand said the pop-up is a “next step within Samsøe Samsøe’s ever-increasing focus on the UK market” and should help it reach new consumers.
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Bangladesh’s garment exports to the US surged 24.49 per cent in the first six months of 2025 to $4.24 billion, led by trousers and shorts, which made up 45.65 per cent of shipments.
Despite a heavy effective tariff burden of 35–36.5 per cent, Bangladesh has retained its dominance in bottom-wear exports due to strong price competitiveness.
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FIEO president S C Ralhan described the development as a severe setback, warning that around 55 per cent of India’s US-bound shipments, worth approximately $47–48 billion, now face pricing disadvantages of 30–35 per cent. This, he said, makes Indian products uncompetitive compared to those from China, Vietnam, Cambodia, the Philippines, and other Asian producers.
FIEO has warned that the US’ additional 25 per cent tariff on Indian goods, raising duties to nearly 50 per cent, threatens $47–48 billion in exports, hitting textiles, leather, and other labour-intensive sectors.
President S C Ralhan urged urgent government support, credit relief, expanded PLI schemes, FTAs, and stronger diplomacy with Washington to sustain competitiveness.
The textile and apparel hubs of Tiruppur, Noida, and Surat have already reported production halts due to eroding cost competitiveness. Other labour-intensive sectors including leather, ceramics, chemicals, handicrafts, and carpets are also expected to face order cancellations and reduced global competitiveness, FIEO said in a press release.
In response, the president urged immediate government intervention. Suggested measures include interest subvention schemes, enhanced export credit support, low-cost lending for micro, small and medium enterprises (MSMEs), and a one-year moratorium on loan repayments. He also called for automatic credit limit enhancements of 30 per cent, collateral-free lending on emergency credit line guarantee scheme (ECLGS) lines and expanded production-linked incentive (PLI) schemes.
FIEO further emphasised the need for aggressive market diversification through fast-tracked free trade agreements (FTAs) with the EU, GCC, Africa, and Latin American nations, alongside investments in cold-chain and storage infrastructure. While diversification is key, the president underlined that urgent diplomatic engagement with Washington remains critical.
Promoting ‘Brand India’ through global branding, innovation, and quality certifications was also highlighted as a long-term strategy. FIEO has appealed for swift, coordinated action between exporters, industry bodies, and the government to safeguard livelihoods and maintain India’s export momentum in the face of escalating trade headwinds.
Fibre2Fashion News Desk (SG)
Smythson opens at Liberty, Pulco at Harrods and Samsøe Samsøe at Selfridges
Bangladesh’s US garment exports surge in H1, led by trousers & shorts
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