India is likely to gain some advantage in the US market
after 10 per cent tariff hike announcement against China.
Trump administration had also announced to hike tariff by 25
per cent on goods imports from Mexico and Canada, but their
imposition is now postponed by 30 days after both nations
agreed to combat illegal immigration and drug trafficking
from their nations.
At present, China holds around 25 per cent market in textiles
and apparel imports by the US. The country has supplied
24.23 per cent textile and apparel in terms of value out of the
total imports of $99.125 billion by the US during January-
November 2024, as per the latest trade data released by the
Office of Textiles and Apparel (OTEXA).
Post imposition of 10 per cent tariff, Chinese textiles and
apparel will become costlier for the US consumers. It will lead
to slow down of imports from China, and the gap may be filled
by other suppliers like India and other textile exporting
nations.
Bangladesh, the second-largest supplier of garments after
China, has not yet fully recovered from the August 2024
political upheaval. In such a scenario, India may be in a
strong position to take a large share of the gap created by
imposition of tariff on China. However, India would not be
able to take full advantage as it has certain limitations, like
not being able to produce on large-scale like China, in
supplying goods to the world’s largest economy. In addition, it
also faces competition from other exporting nations which
may also try to take a higher share in the US market. Indian
textile veterans are optimistic to get advantage from the latest
development.N Thirukkumaran, General Secretary, Tiruppur
Exporters Association (TEA) said, “Tariff is not good for
businesses and economies. India might benefit temporarily
from the tariff imposed by the US on China. However, there is
also a risk that tariff could also be imposed on India. So rather
than the temporary benefits, we should aim to look at building
competitiveness that would benefit in the long run.”
Sanjay K Jain, Chairman ICC Textiles Committee &
Managing Director, TT Ltd said, “The impact of tariff hike will
be positive on India. China is a major competitor of India in
the market of the US. We should pursue this opportunity
strongly to take maximum benefit of the current happening.”
Ashish Gujarati, Past President of South Gujarat Chamber of
Commerce and Industry (SGCCI) and President of Surat
based Pandesara Weavers Co-operative Society Ltd said, “The
tariff hike on China will give advantage to our industry. If we
pursue the opportunity, we can increase shipment of garment
and home textiles in the US market.” He said that India
exports around 29 per cent textiles to the US. “It is more
important market for us. We export not more than 5 per cent
textiles in any other market. We can strengthen our position
in the US market.”
Rahul Mehta, Chief Mentor, The Clothing Manufacturers
Association of India (CMAI) said, “High tariff imposition is a
double-edged sword at best of times. Whilst on paper it
provides protection to the domestic industry, it also increases
the costs of production for the users of such imports. In the
case of imports of finished goods into the US, we will also need
to take into account the increased prices to US consumers.”
“What will be the social, economic, and political fallout of that?
Additionally, what will be the cost of production if such
industries are shifted to the US? Both these factors will need
to be considered before across the board tariff increases are
introduced. Personally, I am of the belief that it will not be in
US interest to go in for a massive increase in tariffs,” he stated
India may gain in US textile market after tari
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