Govt must step in to help textile sector address fresh US tariff challenge: CITI

New Delhi: The 25 per cent tariff announced by the US will hurt the textile and apparel exports from India and the government should come to the aid of exporters, said the Confederation of Indian Textile Industry (CITI) on Friday. US President Donald Trump has announced imposition of 25 per cent tariff on Indian exports which will come into effect from August 7.

The CITI suggested that the government should facilitate the availability of raw material for the sector at internationally competitive rates to enable the domestic exporters compete with international peers.

The decision of the US to substantially reduce tariffs for competing countries like Bangladesh will compound the difficulties for India’s textile and apparel exporters, CITI Chairman Rakesh Mehra said.

The new US tariff for Bangladesh is 20 per cent, Indonesia and Cambodia 19 per cent each and Vietnam 20 per cent. Currently, China is the biggest exporter of textiles and apparel items to the US, followed by Vietnam, India, and Bangladesh.

The US is India’s largest market for textile and apparel exports. During January-May 2025, US imports of textile and apparel from India were valued at $4.59 billion, a rise of more than 13 per cent compared to the same period last year when the figure stood at $4.05 billion.

India has set a target of achieving textile exports worth $100 billion by 2030.

Mehra said CITI looks forward to the proposed bilateral trade agreement (BTA) between India and the US being in place soon. “We totally agree with the government that India should always protect its national interests while signing any trade deal to ensure that it is fair, balanced, and equitable for all the parties involved in the agreement,” he added.