US market share in Indian apparel exports is set to shrink following US tariff hike, with apparel exporters seeing a 6-9 per cent dip in revenues in fiscal 2025-26 (FY26), ICRA recently projected.

Margins in the sector are likely to contract by 200-300 basis points (bps) due to discounts or inability to fully pass on tariffs.

US market share in Indian apparel exports is set to shrink following US tariff hike, with apparel exporters seeing a 6-9 per cent dip in revenues in FY26, ICRA recently projected.
Margins in the sector are likely to contract by 200-300 bps due to discounts or inability to fully pass on tariffs.
Moderation in credit metrics is envisaged for apparel and home textile exporters.

Moderation in credit metrics is envisaged for apparel and home textile exporters, ICRA said in a note.

The United States and European markets continue to be the major markets for Indian apparel exporters, accounting for 33-34 per cent and 31-32 per cent share respectively in FY25 and Q1 FY26.

Asian countries, namely Vietnam, China, Bangladesh, India, Indonesia, Cambodia and Pakistan, collectively represent 70 per cent of apparel imports by the United States.

The United States has been the topmost destination for apparel exports for India, accounting for a third of the share of total exports in 2024. In the home textiles segment as well, the country is a key market, accounting for 59 per cent share in 2024. In the cotton yarn segment, the US share in India’s exports is less than 1 per cent and will have a negligible impact.

While India was at a competitive position initially as the tariff actions were much steeper in other key competing nations like China, Bangladesh and Cambodia. But after the United States imposed a 50-per cent tariff on Indian apparel imports, Indian garments became significantly more expensive compared to those from other key competing nations, which face lesser tariffs.

While the recently concluded trade deal between India and the United Kingdom could lead to a shift in trade volumes to the UK market, ICRA expects a larger impact over the longer term as the validation process from customers usually consumes time.

At a broader level, entities have not yet experienced significant disruption, as orders are typically placed three to four months in advance and most exports are conducted on free-on-board (FOB) basis.

While a large portion of shipments was expedited before imposition of the additional tariffs, the impact is expected to be more pronounced in the second half (H2) of this fiscal as the tariff burden renders India less competitive.

Entities were largely able to pass on the initial 25 per cent tariff increase to customers, offering only minor discounts. However, full clarity on pricing implications following the additional 25 per cent penalty tariff is still awaited. ICRA anticipates margin contraction for textile manufacturers in H2 FY26.

Entities with diversified manufacturing facilities across other geographies (like Sri Lanka, Bangladesh, Vietnam, Africa, etc) are expected to redirect orders to these locations, thereby mitigating the impact.

Players in the sector also expect supportive measures from the government to help navigate the current challenges.

Fibre2Fashion News Desk (DS)

Maison Christian Louboutin is delighted to announce the appointment of Jaden Smith as the Maison’s first Men’s Creative Director, marking a significant milestone in the evolution of its men’s universe. In this role, Jaden Smith will oversee the creation of four collections annually across men’s shoes, leather goods, and accessories, while shaping a distinctive visual and emotional universe that extends beyond product design to encompass campaigns, events, and immersive experiences.

Christian Louboutin and Jaden Smith first met in Paris in 2019—an encounter that sparked a genuine dialogue built on mutual admiration for each other’s vision and individuality. Their conversations left a lasting impression on Christian Louboutin, who was deeply inspired by Jaden Smith’s inventive spirit, his respect for the Maison, his thoughtful awareness of the world, and his commitment to shaping a more conscious future.

Maison Christian Louboutin has named Jaden Smith its first men’s creative director, a move set to redefine its men’s universe.
Smith will design four annual collections of shoes, leather goods, and accessories while shaping campaigns and experiences.
His debut collection will launch at Men’s Fall/Winter 2026 Paris Fashion Week, with a capsule release in January 2026.

From this mutual inspiration, their relationship has grown into a shared artistic journey, now crystallized in this new creative chapter. Jaden Smith’s philosophy—rooted in cultural curiosity and a fearless approach to creativity—resonates strongly with the values at the heart of the Maison. A multifaceted artist, Jaden Smith steps into this role with the ambition to expand and enrich the men’s narrative. Drawing on nearly a decade of shoe collaborations, his own fashion label, and his ongoing dialogue with music, performance, and activism, Jaden Smith will interpret Christian Louboutin’s legacy through his unique creative lens.

“When I first met Jaden, I saw in him a natural fit for the Maison, his world is rich and multidimensional, his style and cultural sensibility are inspiring and his curiosity and openness are remarkable. I felt that with his creative direction our men’s collection would evolve in an exciting and dynamic way. He feels like the perfect addition to our creative team and I am truly looking forward to having fun working with him on our men’s collections.”— Christian Louboutin

“Merging my vision with Christian’s comes quite naturally because we see the world in a very similar way. There’s a shared respect for creative freedom, and I think that’s why it works. I want to continue the story, honoring the past while shaping the future through my own perspective. It isn’t just a title — it’s a creative home. Christian has given me a place to explore, to learn, and to create freely. His legacy is built on hard work and joy, and I want to carry that forward.”— Jaden Smith.

“We launched our Men’s line more than 15 years ago in a very genuine way, as we always do. Today, it represents 24% of our business, and we believe there is still tremendous potential. This is the perfect time to strengthen our creative team by welcoming Jaden alongside Christian. We share the same values and the Maison’s DNA.” — Alexis Mourot, Chief Executive Officer.

Jaden Smith’s avant-premiere capsule will be available in January in select boutiques worldwide and on christianlouboutin.com, while his debut collection will be revealed during Men’s Fall/Winter 2026 Paris Fashion Week in January.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)