The Trump administration’s 90-day halt on reciprocal tariffs has been described as a stopgap measure by the Confederation of Indian Textile Industry (CITI), which has urged the Government to think about implementing an interim Textile Exports Protection Scheme to lessen the burden of additional tariff costs faced by exporters.
The organisation, representing the textile sector, emphasised that in order to reach a more mutually beneficial and sustainable solution, the Government had to step up its interaction with its US counterparts. India’s top export market for clothing and textiles is the United States.
The reciprocal tariffs that were supposed to be imposed on 75 nations with which the US has a trade imbalance on 9th April were postponed by 90 days by US President Donald Trump on Wednesday.
On the other hand, the United States increased the tax rate on Chinese imports to 125 per cent “effective immediately”. The higher 10 per cent tariff, which went into effect on 5th April, will remain in place, though. In India’s situation, the 16 per cent extra tariff has been suspended for ninety days.
Indian textile and apparel (T&A) exporters, who were anticipating increased tariff barriers, will experience a little reprieve thanks to the interim relief. This measure is really a temporary solution, though. In order to reach a more mutually beneficial and durable solution, the Government must step up its interaction with its US counterparts, said CITI Chairman Rakesh Mehra.
“The United States is the largest destination for Indian T&A exports,” he stated, emphasising the significance of the US market. The industry requests that the Government take into consideration implementing an interim Textile Exports Protection Scheme, even as it actively pursues bilateral discussions for improved tariff access. Given the wafer-thin margins that T&A exporters operate on, such a step would assist lessen the impact of increased tariff expenses.
