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CMAI Warns of Severe Impact on Indian Apparel Exports as US Tariffs Double

• By  Textile Excellence
• August 21, 2025

The Clothing Manufacturers Association of India (CMAI) has voiced strong opposition to the United States’ decision to raise tariffs on Indian apparel exports from 25 % to 50 %, warning of serious repercussions for the sector. According to CMAI, the move will raise the landed cost of Indian apparel in the US by 30 to 35 % compared to products from Bangladesh and Vietnam, severely undermining competitiveness in a key export market.

Santosh Katariya, CMAI President, described the measure as “unjustified, unfair, and arbitrary,” noting that buyers are unlikely to absorb such a steep price gap, potentially triggering a sharp decline in orders. CMAI cautions that the hike could destabilise the industry, leading to factory closures, widespread job losses, and significant economic distress.

Vice President Ankur Gadia urged the Government of India to adopt a firm stance and negotiate fairer trade terms with the US. Chief Mentor Rahul Mehta recommended urgent collaboration between government and industry to mitigate the impact, expressing hope that the move might be part of a broader negotiation strategy.

The US is one of India’s largest apparel export destinations, and CMAI anticipates the coming months to be especially challenging. The association has called for immediate policy interventions to safeguard the industry’s long-term viability in the face of this “draconian” levy.

Santosh Katariya, CMAI President, described the measure as “unjustified, unfair, and arbitrary,” noting that buyers are unlikely to absorb such a steep price gap, potentially triggering a sharp decline in orders. CMAI cautions that the hike could destabilise the industry, leading to factory closures, widespread job losses, and significant economic distress.