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)
Fashion
A summer roundup of news from the beauty industry: amidst flagging results and economic turbulence
Published
August 27, 2025
As summer draws to a close, it’s time to take stock for global beauty players. The 2025 summer season has been marked by mixed financial publications, against a backdrop of slowing consumer spending, markets that have become unpredictable and, above all, the forthcoming rise in customs duties in the United States.
While some companies fared better than others, all had to contend with a more complex economic reality. Here’s a look at the main players in the sector: France’s L’Oréal and the Americans, Coty and Estée Lauder.
Coty in transition, between falling sales and possible asset disposals
The American group Coty saw its sales fall by 4% in its fiscal year ending June 30, 2025, for net sales of $5.89 billion (€5.07 billion). Demand remains weak, particularly in North America, and retailers are clearing their inventories rather than placing new orders. The group has indicated that it is going through a “transition year” and is counting on a return to growth in the second half of fiscal 2026.
Faced with this tense economic situation, Coty has launched a new phase of transformation called All-in to Win, which involves restructuring around 700 jobs. At the same time, market speculation has been circulating since June about a possible sale of assets, notably in luxury and consumer cosmetics. France’s Interparfums may be in the running.
Estée Lauder deepens losses and accelerates restructuring
For the other American giant, Estée Lauder, the results published at the end of August were particularly alarming. The group recorded a net loss of $546 million in the fourth quarter of its 2025 fiscal year, a figure almost double that of last year. This underperformance is largely due to the implementation of a restructuring plan announced in February, the total cost of which is estimated at between $1.2 and $1.6 billion. In all, between 5,800 and 7,000 jobs will be eliminated worldwide.
The general decline in sales, down 8% for the full year to $14.3 billion (€12.3 billion), affected all segments except perfume, which remained stable. The group was particularly hard hit by the collapse of travel retail sales, which fell by 28%.
Despite this, Estée Lauder remains hopeful of a rebound as early as 2026, betting on a gradual recovery, selective price increases, and double-digit growth in e-commerce. However, management anticipates a negative impact of around $100 million from U.S. tariffs in the current financial year.
L’Oréal forges ahead, buoyed by North America
In this tense climate, L’Oréal is doing rather well. At the end of July, the French group published sales up 1.6% to 22.47 billion euros for the first half of 2025, with net income up 1% excluding exceptional items. The United States is positioned as the main contributor to this growth, despite the introduction of new customs duties of up to 15% on cosmetics imported from Europe.
For the moment, management is downplaying the impact of these tariffs, describing the situation as “manageable”. L’Oréal already manufactures half of its products sold in North America in its four local plants, has built up strategic stocks, notably for its luxury and fragrance ranges, and is planning moderate price adjustments.
The group is also continuing to invest and strengthen its position, with the acquisition announced in June of the Color Wow brand, specialized in hair care products. CEO Nicolas Hieronimus says he is “ambitious” for the second half-year, while acknowledging an uncertain economic climate for both businesses and consumers.
While performances are mixed, global beauty players all share one observation: the market has become more volatile, purchasing behavior more unpredictable, and economic pressures increasingly difficult to circumvent.
Inventory adjustments, restructuring, industrial relocation, price increases, or asset disposals… the strategies differ, but all aim to maintain balance in an environment that has become highly unstable.
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Copyright © 2025 FashionNetwork.com All rights reserved.
Published
August 27, 2025
The European Commission on Tuesday rejected US President Donald Trump‘s criticism that EU rules on digital services unfairly target U.S. technology companies. The EU also rejects the idea that these regulations are tantamount to censorship.
Trump wrote on Monday that he would impose additional tariffs on all countries with digital taxes, laws or regulations, claiming they were “all designed to harm or discriminate against American technology”.
During August, the U.S. and EU agreed a joint statement on a deal to limit most U.S. tariffs on EU goods exports to 15%, with no mention of digital services.
The Trump administration has consistently criticized the European Digital Markets Act (DMA), which aims to limit the power of tech giants, and the Digital Services Act (DSA), which obliges major online platforms to fight illegal and harmful content.
The European Commission, which proposed both laws, declared on August 26 that it was the sovereign right of the EU and its member states to regulate economic activities. The Commission strongly refuted Trump’s claim that the EU was targeting US companies, insisting that the DMA and DSA applied to all platforms and companies operating in the Union.
A European spokesperson added that the last three DSA enforcement decisions concerned AliExpress, Temu and TikTok, all of which are owned by Chinese interests. The Commission has also opened DSA investigations into X (formerly Twitter) and Meta.
Accusations that European data laws censor social networks, as asserted by Meta CEO Mark Zuckerberg, are “totally false and unfounded,” said the EU spokesperson.
The DSA is not asking platforms to remove content, but to apply their own terms and conditions, which define what should not appear on their platforms.
“And while we’re on the subject, more than 99% of content moderation decisions taken online in the EU are proactively taken by platforms, based on their own terms and conditions,” said the spokesperson.
As FashionNetwork.com noted, this latest U.S.-EU tussle comes at a time when the European Union wants to step up its fight against anti-competitive practices by some major digital platforms, but also intends to lay down a legal framework for the exploitation of artificial intelligence.
(with Reuters)
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Copyright © 2025 FashionNetwork.com All rights reserved.
Published
August 27, 2025
French fashion house Karl Lagerfeld unveiled on Wednesday its new fall 2025 campaign featuring entrepreneur and pop-culture icon Paris Hilton, marking her debut as brand face.
Lensed by fashion photographer Chris Colls, the new Karl Lagerfeld campaign, dubbed “From Paris With Love”, is a reimagining of “Karl Interviews Karl”, an iconic video moment where Karl Lagerfeld interviewed himself.
However, this time, it’s the Hilton heiress paying homage to Karl, in a series of reverent moments where Paris is even dressed like the namesake designer (think slicked back hair, big black sunglasses, and black and white attire), cleverly portraying his known charm and wit.
“Paris is both a global icon and a businesswoman—someone who understands the cultural power of image and reinvention. She and Karl have each defined eras in their own distinct ways,” said Pier Paolo Righi, CEO of Karl Lagerfeld, which is today owned by U.S. apparel giant G-III Apparel.
“This collaboration captures a dynamic that feels both unexpected and entirely authentic—a dialogue between enduring influence and ever-evolving relevance.”
The campaign features items from both Karl Lagerfeld Paris and Karl Lagerfeld Jeans, including structured tailoring and more off-duty looks, paired with the latest accessories from the house. Hilton is joined by Spanish model and actor Jon Kortajarena, fronting the campaign for men’s.
“Karl was a true original—bold, iconic, and always ahead of his time. I’ve always admired his rebellious spirit. To be part of Karl’s world, especially in this campaign which celebrates individuality and playfulness, feels like such a natural fit,” said Hilton, in a press release. “‘From Paris With Love’…It’s an honor to be part of his legacy in a way that feels true to who I am.”
Hilton is on a run when it comes to campaigns. Earlier this week, the starlet was named the new brand face of luxury haircare brand Paul Mitchell, with Karl Lagerfeld parent G-III also banking on Hilton’s star power to lift sales across its portfolio of brands, as it lets go of key licenses like Calvin Klein.
In June, G-III Apparel reported a 4% decline in sales to $583.6 million in the first quarter, hurt by the U.S. fashion firm’s returning of its Calvin Klein and Tommy Hilfiger licenses to parent PVH Corp.
Copyright © 2025 FashionNetwork.com All rights reserved.
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