Opposing view that tariffs will only hurt Indian textile sector

Skeptics warn that pinning hopes on US tariffs is risky. If the Trump administration imposes across-the-board tariffs on all imports, including Indian textiles, the advantage quickly vanishes. American retailers, facing higher costs, may reduce orders or demand discounts, squeezing margins. Moreover, tariffs on Indian goods could push US buyers to source from other countries like Vietnam or Mexico, which have trade agreements with America. The Indian textile sector also struggles with high raw material costs, logistics bottlenecks, and labour issues, making it less competitive. Industry associations have cautioned that any tariff hike could lead to job losses, particularly in small and medium units that cannot absorb shocks. They argue that instead of relying on trade wars, India should focus on negotiating a free trade agreement with the US to secure stable, duty-free access. The divided opinion reflects deep uncertainty, and many firms are postponing investments until policy clarity emerges.