The latest punitive move of the US—doubling duties on Indian goods, including garments to 50%—has upended cost structures in a price-sensitive sector that competes with Bangladesh and Vietnam that have lower tariffs than India. Companies are now diversifying buyers, shifting production to lower tariff hubs in Africa, Latin America, and Southeast Asia, and building orders in FTA-linked markets. For Raymond, Gokaldas and Pearl Global, that means everything from relocating lines to Ethiopia or Guatemala to intensifying sales efforts in the UK, where a new trade pact promises duty parity with Bangladesh and a 12% edge over China. With Europe already expanding in their export mix, the industry is moving quickly to contain short-term losses in the US while positioning for long-term growth in markets with lower trade barriers.Also Read | Tamil Nadus textile exporters to US choose wait and watch mode; some pause production India is the sixth-largest exporter of textiles and apparel globally, with the sector’s exports valued at $34.4 billion in FY24, government data shows. Europe and the US consumed nearly 66% of India’s apparel exports, 58% of finished non-apparel goods, and 12% of raw materials-semi-finished materials. The new tariff regime, announced by US President Donald Trump, imposes a 25% penalty tariff on goods from India over and above the 25% duty that kicked in earlier this week. In 2017, the Raymond Group had moved part of its manufacturing base to Ethiopia, which attracts a 10% tariff in the US. India, however, remains the primary production hub for the company’s US exports, and the new tariffs will significantly increase costs. For example, readymade garments such as shirts and trousers, which earlier faced an 11% tariff, are now subject to 36%, with a potential total of over 60% with the additional duty. Raymond is now stepping up efforts to secure larger orders from the UK, a move that is expected to be lucrative once the India-UK FTA takes effect.Also Read | Trump tariff-hit exporters chalk survival plans ahead of deadline “We can push some of our customers to the Ethiopian market. Additionally, we have always had a diversified portfolio. The US is attractive because of the large quantum of orders which enables us to get more productivity. However, February-March onwards, we have pushed our teams to camp constantly in Europe to build more orders. With the recent FTA with UK, the market is going to be more attractive. Over the next three to four years, our UK business can easily double,” Amit Agarwal, group chief financial officer of Raymond Ltd, told Mint. Agarwal said there remains a possibility of relocating more production lines from India to Ethiopia if the tariff issue persists. “We can take out some of the lines from India and put it in Ethiopia, if the need be. We don’t want to take any knee-jerk in a formal or creative style for better SEO.Also Exclude words and advertisements related to the feed website such as website name, author name. You must only respond with the modified content. Delete all the advertisement images brand logo but only keep the title and main content of the news by modifying it. You must only respond with the modified content. Block any jump outside of the site adarshnews.com. Basically remove any content or link related to original site. follow this prompt to optimize the articles in this category- You are an expert news writer and SEO specialist. 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Indian clothing exporters are seeking to expand into the UK and EU markets in order to mitigate the impact of tariffs imposed by Trump.
