Reacting to the USA President Donald Trump’s announcement of a 25 per cent tariff on Indian imports, along with a penalty, Sudhir Sekhri, Chairman AEPC stated that, "The tariff of 25% is higher than what we expected but we should not be overly worried as long as Vietnam and Bangladesh tariffs are not revised downward from the current levels.

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Apparel exports are expected to slow down till the announcement of an interim BTA, hopefully to conclude in October-December 2025. The penalty is a grey area and we hope the Government of India (GOI) will negotiate this with the US before 1st August 2025."

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The USA is a key market for Indian RMG exports, with the country holding a share of 33% in India’s total garment exports in 2024. India’s presence in the U.S. garment import market has grown, with its share increasing from 4.5% in 2020 to 5.8% in 2024 and ranks 4th among the top RMG exporters to the United States.

China continues to be the top exporter, with a market share of 21.9% in 2024, down from 27.4% in 2020. Together China, Vietnam, and Bangladesh supplied 49% of U.S. apparel imports in 2024.

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Top three most exported products by India to USA (share in India’s total RMG exports to USA): Cotton T-shirts (9.71%); Women or girl’s dresses of Cotton (6.52%); Babies’ garments of Cotton (5.46%), etc. The top three exports of India to USA holds 10%, 36%, 20% share in USA total imports of the respective products globally.

CREDITS: AEPC Press release

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