As the United States signals potential reductions in tariffs under the leadership of President Donald Trump, Indian industry stakeholders are hopeful for a more favourable bilateral trade environment, particularly for labour-intensive sectors like apparel.

President Trump's recent remarks indicating a willingness to lower tariffs have been welcomed by Indian exporters. However, industry leaders caution that unless these intentions translate into concrete tariff eliminations—especially on key product categories such as garments—the broader goals of trade enhancement and global competitiveness may remain unmet.

“President Trump’s indication of lower tariffs is an encouraging signal for India’s labour-intensive sectors such as apparel. However, unless the bilateral trade agreement achieves meaningful tariff elimination—particularly on garments—the deal risks falling short of enhancing our global competitiveness,” said Shivansh Kansal, Director, CTA Apparels.

Highlighting the challenges faced by the sector, Kansal added, “Indian apparel exporters already operate under intense price pressures, where even a 5–10% tariff can prove to be a decisive barrier. We hope both sides will work towards a fair, forward-looking agreement that acknowledges and supports the vital contribution of India’s job-creating industries.”

India’s apparel sector, which employs millions across the country, has long advocated for duty-free access to key markets like the U.S.A streamlined trade agreement, experts believe, could unlock new growth avenues, enhance exports, and strengthen India's positioning in the global supply chain.

As trade negotiators prepare for the next round of bilateral talks, expectations are high that both nations will take strategic steps to reinforce economic cooperation while addressing critical tariff concerns affecting India’s employment-generating sectors.