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India braces for impact of 50% tariff on exports to US

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India braces for impact of 50% tariff on exports to US


Translated by

Nicola Mira

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August 26, 2025

On August 27, a 50% tariff on Indian goods entering the U.S. is set to come into effect. A prospect that is especially concerning for India’s textile-apparel industry, a sector in which the country is the second largest supplier to the U.S. after China.

Narendra Modi and Donald Trump – Shutterstock

Last year, India exported $16.3 billion worth of textile and apparel products to the USA. And the recent tensions relating to the unsuccessful trade negotiations between the two nations prompted U.S. importers to increase their orders placed to Indian manufacturers. In H1 2025, U.S. orders to India grew by 18.6%, while orders placed to China fell by 16.2%.

The U.S. clearly plays a key role in India’s textile and apparel export strategy, being the market that absorbs 25% of India’s exports. As did other Asian countries targeted by Donald Trump’s new tariffs, India has expressed through its government the possibility of redirecting its exports to European clients. Last year, India exported €6.7 billion worth of textile and apparel products to the EU, but it would now have to compete with other Asian supplier countries on the European market.

The Indian government is also concerned about the impact U.S. tariffs would have on employment. The textile sector alone is said to generate more than 45 million direct jobs in India, plus an additional 100 million or so indirect jobs, making it the second-largest employer in the country. India is also one of the world’s leading cotton producers, and has more than 3,400 textile factories.

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Bangladesh’s RMG exports up 4.7% in Q1 FY26, but Sept shipments dip

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Bangladesh’s RMG exports up 4.7% in Q1 FY26, but Sept shipments dip



Woven garment exports slightly outpaced knitted garment exports in terms of growth. Knitwear exports (Chapter **) rose by *.** per cent to $*.*** billion, compared to $*.*** billion in the same period of fiscal ******. Woven apparel exports (Chapter **) increased by *.** per cent to $*.*** billion, up from $*.*** billion in July–September ****, EPB data showed.

Home textile exports (Chapter **, excluding ******) also grew, rising by *.** per cent to $***.** million, compared to $***.** million in the same period of the previous fiscal. Collectively, exports of woven and knitted apparel, clothing accessories, and home textiles accounted for **.** per cent of Bangladesh’s total exports, which stood at $**.*** billion during the period. Higher demand for diversified and value-added textile products supported this growth.



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Dutch manufacturing flat in August, up 1.7% from July: CBS

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Dutch manufacturing flat in August, up 1.7% from July: CBS



In August 2025, the calendar-adjusted output of the Dutch manufacturing sector was at the same level as in August 2024, according to Statistics Netherlands (CBS). Output was down in slightly more than half of the underlying sectors.

Slightly more than half of the various industrial sectors produced less than they did one year previously. Of the eight largest industrial sectors, output rose the most sharply in the repair and installation of machinery, while it fell the most sharply in the transport equipment industry.

A more accurate picture of changes in short-term output is obtained when the figures are adjusted for seasonal effects and the working-day pattern. After adjustment, manufacturing output rose by 1.7 per cent in August relative to July, CBS said in a press release.

In August 2025, Dutch manufacturing output remained unchanged year-on-year, although output declined in over half of the industrial sectors.
After seasonal adjustment, output rose by 1.7 per cent compared to July.
The strongest growth was seen in the repair and installation of machinery, while transport equipment recorded the sharpest decline.

After adjusting for seasonal and working-day effects, manufacturing output often fluctuates significantly. In the spring of 2020, output declined rapidly, reaching a low point in May 2020. This was followed by an upward trend until May 2022. The trend has reversed since then.

Producer confidence was less negative in September than it was in August. Manufacturers were more positive regarding output for the next three months, in particular.

Germany is an important market for the Dutch manufacturing sector. In September, German manufacturers were more negative than they were in August, as reported by Eurostat. In August, the calendar-adjusted output of the German manufacturing sector was down by 5.1 per cent, year on year. Relative to July, output fell by 5.5 per cent, as reported by Destatis.

Fibre2Fashion News Desk (RR)



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ADB commits $82.5 mn to drive Cambodia’s energy transition

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ADB commits .5 mn to drive Cambodia’s energy transition



The Asian Development Bank (ADB) has approved the second phase of Cambodia’s Energy Transition Sector Development Programme (ETSDP) for $82.5 million. Cofinanced by the ASEAN Infrastructure Fund, the Asia–Pacific Climate Finance Fund, the Green Climate Fund, and the United Kingdom through the ASEAN Catalytic Green Finance Facility, the programme aims to provide comprehensive support for the country’s clean energy transition by combining policy reforms with investment projects in new technologies.  

The first subprogramme, approved in 2022, introduced pivotal policy measures that guided the energy sector toward a more efficient and renewable development pathway. Building on this foundation, subprogramme 2 advances regulatory reforms to strengthen the energy efficiency framework and enhance policy clarity to attract private sector investment. A key milestone under the subprogramme is the introduction of the country’s first set of regulations establishing Minimum Energy Performance Standards for electrical appliances, starting with air conditioners, which account for the largest share of energy consumption in the residential sector, ADB said on its website.

Subprogramme 2 will also establish an Energy Efficiency Revolving Fund aimed at facilitating access to finance for local small and medium-sized enterprises (SMEs) to invest in energy-efficient technologies. The revolving fund will be set up through a financial intermediation structure to enable local banks to extend loans to SMEs for energy efficiency investments. By mobilizing domestic financial institutions and supporting SMEs, the revolving fund is expected to accelerate the nationwide scale-up of energy efficiency investments.

Asian Development Bank (ADB) has approved $82.5 million for Phase 2 of Cambodia’s Energy Transition Sector Development Programme to support clean energy through policy reforms and investments.
The programme introduces energy efficiency standards, establishes a revolving fund for SME financing, and also aims to attract private investment.

“ADB is honoured to support Cambodia in its ambitious and transformative journey in the energy sector. Through a comprehensive reform package, combining policy support with strategic investments, the Energy Transition Sector Development Programme will support turning the government’s ambitious vision into reality,” said ADB acting country director for Cambodia Anthony Gill. “This includes the goal of achieving 70 per cent renewable energy in the power mix by 2030, along with a strong commitment to advancing energy efficiency, which is essential to ensure that Cambodia’s growth remains both sustainable and affordable.”

Subprogramme 2 will be followed by a third phase in 2027, which will further deepen reforms by expanding the energy efficiency regulatory framework and introducing technical standards for renewable energy, buildings, and industry to further attract private sector investment.

Fibre2Fashion News Desk (RR)



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