Indian textile exporters are turning toward the European market and offering steep discounts to U.S. buyers to offset newly imposed tariffs of up to 50%, industry executives say.
The tariff increase was introduced by President Trump in August, targeting a wide range of Indian exports, including garments, jewelry, and shrimp.
To reduce dependence on the U.S., apparel exporters are prioritizing entry into EU markets. Meanwhile, they are also upgrading factories to meet stricter EU rules on labeling, chemicals, and ethical sourcing.
A Mumbai-based exporter said his company is offering discounts to U.S. clients and diversifying into Europe. Trade talks between India and the EU are now in a critical phase as negotiators aim to seal a free trade agreement by year’s end.
The European Union is India’s largest trading partner in goods, with two-way trade reaching $137.5 billion in the year to March 2024.
Some exporters warn of job losses if the pressure continues. One firm said it might lay off 6,000–7,000 workers or shift production to Oman or Bangladesh if U.S. tariffs remain punitive.
As the U.S. shifts its trade policy, India’s textile sector is responding quickly — reorienting markets and investors to sustain growth.
