The Indian textiles and garment industry has urged the government to provide urgent relief as the additional 25 per cent punitive tariff imposed by the US will take effect from August 27, 2025. This will push the total duties on Indian apparel exports to above 50 per cent. Industry representatives warned the move poses an existential challenge, threatening millions of jobs and thousands of factories.

The Apparel Export Promotion Council (AEPC) said the industry had reconciled to a 25 per cent reciprocal tariff but the further burden would make Indian exports uncompetitive. “The additional 25 per cent will close the US market for Indian apparel. Exporters will now face a tariff differential of 30–31 per cent against major competing nations,” AEPC Secretary General Mithileshwar Thakur told Fibre2Fashion. He urged immediate fiscal support until a bilateral trade agreement can be reached.

India’s apparel industry warns of an existential crisis as US tariffs on exports will soar to above 50 per cent from August 27, 2025.
Exporters face a tariff gap of over 30 per cent against competitors, risking three million jobs and 20,000 factories.
Industry leaders urge urgent fiscal support and stronger diplomatic engagement until a bilateral trade pact is secured.

Jasveen Kaur, Senior Director of Merchandising at New Times Group, described the tariff shock as “seismic,” saying nearly 25 per cent of Tiruppur’s US-bound knitwear orders have already been paused or cancelled. “This is not about two per cent of GDP—it is about millions of jobs and the survival of entire communities,” she said, adding that exporters are slashing prices to keep shipments moving as US buyers renegotiate or withdraw.

Industry estimates suggest around three million jobs and 20,000 factories are at risk. While some exporters are exploring joint ventures in Bangladesh, Sri Lanka, and Southeast Asia, Kaur noted that diversifying markets and securing new buyers could take more than a year. “We need decisive government action and stronger diplomatic engagement with the US,” she appealed.

Sanjay K Jain, Chairman of the ICC National Textiles Committee and MD of TT Ltd, echoed these concerns. “The industry is at a standstill, and 50 per cent of orders (for export to the US) will likely be cancelled. The rest can only be retained if exporters absorb losses. The impact of such super-high tariffs will be terrible and felt across the entire value chain,” he warned.

While the government’s recent move to waive the 11 per cent cotton import duty was welcomed, industry players said it offers little relief against the tariff shock. Exporters are focusing on cost optimisation, targeting a 15–20 per cent reset, but say sustained government support is vital to prevent large-scale disruption in India’s apparel sector.

Fibre2Fashion News Desk (KUL)

With the onset of steep US tariffs from today, India’s textile sector faces renewed pressure on global competitiveness. The Northern India Textile Mills Association (NITMA) has called on the GST Council, meeting September 3–4, 2025, to implement a uniform 5 per cent GST across the man-made fibre (MMF) value chain.

NITMA president Sidharth Khanna warned that the current inverted duty structure—where polyester staple fibre (PSF) is taxed at 18 per cent and polyester spun yarn (PSY) at 12 per cent while fabric is at 5 per cent—is unworkable for spinners. He urged a cut in PSF and PSY rates to 5 per cent to align with fabric.

India’s textile sector is under strain as steep US tariffs take effect today.
The Northern India Textile Mills Association (NITMA) has urged the GST Council, meeting on September 3–4, 2025, to address the inverted duty structure in the man-made fibre value chain by reducing GST on polyester staple fibre (18 per cent) and polyester spun yarn (12 per cent) to 5 per cent, aligning with fabric.

According to Khanna, the present system burdens the industry with blocked working capital in GST refunds, unutilised input tax credits, administrative delays, loss of state SGST incentives, and unfair competition from imports.

“This is a critical moment for India’s textile sector. Decisive action to remove the inverted duty structure will not only counteract the impact of US tariffs but also unlock growth and investment across the MMF value chain, thereby making this event a blessing in disguise,” Khanna stressed.

Fibre2Fashion News Desk (KD)

Its striking architecture, framed by latticework inspired by traditional Yoruba textiles, makes Alara — west Africa’s first fashion and design “concept store” — an imposing landmark in Lagos, Nigeria’s bustling commercial capital.

Founded by Reni Folawiyo a decade ago, Alara embodies her vision of “Afro-lux,” a concept she defines as designs that balance tradition with modernity while positioning African fashion on the global stage.

Inside the store, upscale African labels share space with international brands, decorative art, and books — part of Folawiyo’s mission to place African creativity on equal footing with established global names. The building’s distinctive lattice is inspired by adire, a textile popular among the Yoruba people of southwest Nigeria.

“A lot of the beautiful things that people were making in different parts of Africa were not celebrated in the way that I thought they should be,” said the 60-year-old, explaining how rural craftsmanship often inspires Alara’s collections. “I felt very strongly in my belief that these objects and these people had value.”

Music stars become style ambassadors

West African design is experiencing a cultural moment, Folawiyo noted in an interview in Lagos, where she wore sunglasses with vivid pink lenses.

In May, Nigerian music stars Burna Boy, Tems, and Ayra Starr appeared at New York’s Met Gala, dressed by British-Ghanaian designer Ozwald Boateng.

But for Folawiyo, global recognition requires more than occasional runway appearances. “At the moment, the best way to platform designers outside Africa is to partner and collaborate with institutions that are of repute,” she said, citing her recent pop-up store and exhibition at the Brooklyn Museum and a collaboration with the Los Angeles County Museum of Art.

Drawing from her Yoruba heritage — with its intricate textiles, bold colors, and elaborate ceremonies — Folawiyo also finds inspiration in Senegal’s rugged aesthetics and the Ivory Coast’s refined sophistication. “Alara is my own idea of what a celebration of Africa looks like,” she said.

Culture through cuisine

Behind the boutique lies NOK, a restaurant led by executive chef Pierre Thiam, the Senegalese culinary pioneer who has brought west African food to U.S. diners.

While still high-end, NOK offers more accessible prices than Alara’s fashion and design pieces — a delicate balance in a country marked by extremes: wealthy elites in the oil and tech sectors, a shrinking middle class strained by inflation, and millions of informal workers.

Amid Alara’s stark interior of black walls and white concrete, luxury items stand out as bold statements. A green dress by Nigerian label Eki Kere carries a price tag of 325,000 naira (around $210), while a sculptural table from Senegalese-Nigerian studio Salu Iwadi can fetch up to ten times more, underscoring the store’s blend of accessible fashion and high-end design.

Folawiyo herself comes from Lagos’s elite, as the wife of businessman Tunde Folawiyo and daughter of the late attorney general of Nigeria’s former Western Region, Lateef Adegbite.

But building her vision of African luxury was not easy. Convincing investors and partners to believe in “Afro-lux” proved challenging. “I was very committed to it and I had great belief in myself and my idea,” she said.

Now firmly established in Nigeria, Folawiyo also organizes international fashion showcases, including at Barbados’s Carifesta XV this month. But for her, the industry’s long-term success depends on “passing on knowledge to future generations.”