New Delhi, April 13,2025 : Textile importers based in the US are reaching out to Indian exporters, asking them to bear the costs that may emanate from the US tariffs going forward, two industry executives told.
If they agree on the importers requests, the industry will feel the heat of shrinking margins on the exported products, the executives say.
As per Mitra the impact of the discounts demanded by the US importers will spill over to the entire supply chain.
“I think how most brands are looking at it is we cannot absorb the entire 20 per cent so why don’t you reduce prices by 10-12 per cent and remaining we will absorb so there is definitely going to be pricing pressure on the supply chain,” he added.
However, the executives say that the disparity in the rates of reciprocal tariffs will place the Indian manufacturers and exporters on a better place than countries such as China Vietnam, Cambodia and Bangladesh which will have to bear more tariffs than India.
There will be pressure on the margin but Indian exporters or manufacturers will enjoy an upper hand due to the differences in the tariff rates when it will be come into effect after 90 days, the executives say.
They highlight that the despite the discounts, Indian products will be cheaper than the market by 10-15 per cent and this is “very interesting opportunity.”
Rahul Mehta, Chief Mentor, Clothing Manufacturers Association Of India (CMAI) also said, “Buyers are negotiating with the exporters asking for them to bear the cost of the additional duties.”
Pointing out the strategy of US tariffs after 90 days relaxation, Jatin Mahajan, Secretary, Association of Diagnostics Manufacturers of India (ADMI) said that the global trade will continue to be volatile, and therefore, Indian traders must create a tariff-resilient pricing strategy playbook.
Industry executives are also focusing on market diversification, as Mahajan said,”In the long term, we must explore market diversification by exploring new and emerging markets, creating unique and innovative products whose demand is not significantly impacted by pricing variations, and generating demand for their quality, efficacy, and efficiency.”
“The tariff revisions might allow Indian brands to position just under these critical thresholds. These tariff changes are creating real breathing room for Indian brands trying to break into saturated markets,” said Devansh Jain Nawal, Co-founder & CEO of Culture Circle.
As per the official data of Commerce and Industry Ministry, the textile and apparel industry contributes 2.3 per cent to the GDP, 13 per cent to industrial production, and 12 per cent to exports.
