Apparel exports to US may slow down due to Trump's 25 pc tariff: AEPC

New Delhi, Jul 31 (PTI) The announcement of US President Donald Trump to impose a 25 per cent tariff plus penalty from August 1 on Indian goods may impact apparel exports from India, AEPC said on Thursday.

It said that the announcement of an interim trade deal between the two countries would help to boost exports, Apparel Export Promotion Council (AEPC) said in a statement.

The tariff of 25 per cent is higher than expected, but the industry should not be overly worried as long as Vietnam and Bangladesh tariffs are not revised downward from the current levels, AEPC Chairman Sudhir Sekhri said.

"Apparel exports are expected to slow down till the announcement of an interim trade agreement, hopefully to conclude in October-December 2025. The penalty is a grey area and we hope the Government of India will negotiate this with the US before 1st August 2025," he said.

The US is a key market for Indian ready-made garments' exports, with the US holding a share of 33 per cent in India's total garment exports in 2024.

India's presence in the US garment import market has grown, with its share increasing from 4.5 per cent in 2020 to 5.8 per cent in 2024, and it ranks fourth among the top RMG exporters to the United States.

China continues to be the top exporter, with a market share of 21.9 per cent in 2024, down from 27.4 per cent in 2020. Together, China, Vietnam, and Bangladesh supplied 49 per cent of US apparel imports in 2024.

The top three most exported products by India to the USA are cotton t-shirts, women's or girls' dresses of cotton, and babies' garments of cotton. PTI RR RR SHW