Following the recent announcement of a 25% tariff levy under the India-US trade deal, the Clothing Manufacturers Association of India (CMAI) has expressed concern over the potential impact on India’s apparel exports to the United States.

Rahul Mehta, Chief Mentor of CMAI, issued a statement acknowledging that the move comes as an unexpected development amid ongoing trade discussions.

“Whilst the announced levy of 25% does come into effect, it would indeed be a surprising twist to our expectations on the way the trade talks were proceeding,” said Mehta. 

He added that, given the past unpredictability in tariff decisions involving other nations, it may be premature to react with alarm. “Having seen the several about-turns on the tariff front in the case of other countries, I would not press panic buttons right now,” he noted.

However, Mehta cautioned that should the proposed terms materialize as announced, the repercussions for India’s apparel exports could be significant. “It will make our products 7% to 10% more expensive than some of our competitors, and it will certainly hurt our apparel exports to the US,” he stated.

Despite the setback, Mehta expressed optimism in India’s broader trade strategy, pointing to recent progress on other trade fronts. “Fortunately, this set-back has come at the time when we have just signed an FTA with the UK, and are proceeding rapidly with an FTA with the EU,” he said.

Summing up his outlook, Mehta remarked, “So yes, it is tough times, but not beyond our ability to face.”

The CMAI continues to monitor the evolving trade scenario and hopes for constructive developments that safeguard the interests of Indian apparel manufacturers and exporters.