Textile firms look to diversify away from the US

Indian textile and apparel exporters are strategically shifting their focus away from the US market due to a recent tariff hike that has significantly increased costs. US President Donald Trump's new policy has doubled duties on Indian goods, including garments, to 50%, upending the cost structures of a price-sensitive industry. This puts Indian exporters at a disadvantage against competitors like Bangladesh and Vietnam, which face lower tariffs. In response, major companies such as the

Group, , and Pearl Global Industries are redrawing their global strategies. The primary focus is now on diversifying their buyer base and increasing exports to the UK and the European Union (EU). They are also looking to capitalize on upcoming free trade agreements (FTAs) to gain a competitive edge. Companies are adopting several strategies to mitigate the impact of the tariffs: Production Relocation: Some firms are shifting production to lower-tariff hubs in Africa, Latin America, and Southeast Asia. For example, the Raymond Group had already moved part of its manufacturing base to Ethiopia in 2017, where goods attract a 10% tariff in the US. However, India remains the company’s main production hub for US exports. Leveraging FTAs: Exporters are intensifying sales efforts in the UK, where a new trade pact is expected to provide duty parity with Bangladesh and a 12% advantage over China. The Raymond Group is actively seeking larger orders from the UK in anticipation of the India-UK FTA. This proactive approach aims to contain short-term losses in the US while positioning the industry for long-term growth in more favorable markets. The sector, which ranks as the sixth-largest global exporter of textiles and apparel, is moving swiftly to adapt to the new trade landscape.