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Indian textile sector divided on impact of potential Trump tariffs

Published July 27, 2026 at 10:33 AM UTC

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India's $190-billion textile and apparel industry is split over the likely effects of a new round of US tariffs proposed by former President Donald Trump, who is again a candidate. The proposed tariffs, seen as part of a broader protectionist push, could create winners and losers within the sector. On one side, some exporters argue that higher US tariffs on Chinese goods could give India a competitive edge, diverting orders to Indian mills. On the other, manufacturers warn that any US tariff increase on all imports—including Indian textiles—would raise costs for American buyers and hurt demand. The uncertainty is already affecting investment decisions, with many firms holding back on capacity expansion. The industry, which employs over 45 million people directly or indirectly, is watching closely as trade policy becomes a key election issue in both countries.