The Indian textile industry lost out on some orders for the summer season, placed in September-December 2025, to competitors such as Vietnam and Bangladesh
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REUTERS
Indian exporters across sectors, including garments, leather, engineering goods and footwear, are witnessing a revival in enquiries from American buyers after the US Supreme Court struck down the reciprocal tariffs. The industry is hopeful of orders being restored to pre-tariff levels, despite the 10-15 per cent temporary import surcharge imposed by the Trump regime on all countries, but is cautious about the possibility of other targeted levies in the future.
There is also optimism about refunds flowing in for those exporters who had entered into “tariff-sharing” agreements with their US counterparts for duties paid under the illegal regime.
Tariff Uncertainty
“We lost out on some of our orders for the summer season, placed in September-December 2025, to competitors such as Vietnam and Bangladesh. With the lowering of tariffs, we are hoping for a good fall season. The enquiries coming in are very encouraging,” said Mithileshwar Thakur from the Apparel Export Promotion Council.
But American buyers are confused about the tariff situation and are cautious, said Israr Ahmed, a prominent Chennai-based leather exporter. While on February 24, Trump’s executive order on a 10 per cent global surcharge (valid for 150 days) on imports was implemented, replacing the reciprocal tariffs, his social media post on raising tariffs to 15 per cent is yet to be effected.
“It’s a confusing situation. For now, buyers are ordering as normal. Orders are now coming in as they were before the reciprocal tariffs,” Ahmed said.
Things are also looking up for exporters as most buyers are no longer demanding the steep discounts they sought when tariffs of 50 per cent were in place, said Ajay Sahai from FIEO.
“Moreover, exporters who had tariff-sharing arrangements with their buyers when the duties were in place stand to get that amount back once refunds of tariffs happen,” Sahai added.
Trade Worries
But Trump’s threat of imposing tariffs under other sections, such as Section 301, is a reason for worry. “The possibility of other tariffs is worrying. But Indian exporters are well placed to deal with global tariffs, whether 10 or 15 per cent, as it creates a level-playing field and takes us back to the pre-tariff situation,” Sahai said.
Indian shipments to the US, the country’s largest export destination, hit a record high of $10.14 billion in March 2025. But with Trump’s tariff threats and subsequent imposition of 50 per cent levies in August-September 2025, exports slowed down and were at just $6.6 billion in January 2026 (a fall of 21 per cent compared to January 2025).
Published on February 25, 2026