Apparel exporters rush to close spring '27 US orders
India's apparel exports, which help stock the shelves of major US retailers, currently face 10% tariffs in America. The looming threat of tariff escalations has set off a fresh scramble across labour-intensive sectors even as India's merchandise exports posted a sharp recovery in August.
Kolkata - Indian apparel exporters are swiftly moving to secure US orders before tariffs could escalate, following the House of Representatives' approval of a bill that authorizes President Donald Trump to impose up to 100% tariffs on Moscow's energy trading partners, including New Delhi. Currently, Indian apparel exports face a 10% tariff in America, where they supply major US retailers.
In response to the looming threat of tariff increases, exporters are prioritizing the closure of Spring 2027 orders and accelerating shipments. Despite pressure from US buyers for price reductions, exporters are resisting these demands. Spring shipments are typically dispatched in January-February; however, many exporters have already received orders and production has commenced, enabling some shipments to be expedited.
The apparel exports market in India has experienced a decline of 9.10% in the first five months of the current fiscal year, falling to $6,149.66 million compared to $6,149.66 million in the same period last year. India's merchandise exports from April to August of the fiscal year 2027 have grown by 17.85%, reaching $215.91 billion, up from $183.21 billion in the same period of the previous year.
Sanjay Jain, group CEO of PDS Ltd, expressed that the apparel sector is taking advantage of the lessons learned from last year's tariff shock. Orders sent from India before August 27, 2025, and cleared in the US before September 17, 2025, did not face additional duties. Jain also noted that the proposed tariff should be considered within the framework of ongoing India-US trade negotiations.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
