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US Tariff Ruling Boosts India's Apparel Exports, Says Industry Body

The US Supreme Court has struck down a significant portion of former President Donald Trump's tariff agenda, ruling the underlying law did not authorize such import duties. Following the ruling, Trump announced a new 10% global tariff, while defending the US-India trade arrangement as fair. Dr A Sakthivel, Chairman of the Apparel Export Promotion Council, states the tariff reduction is advantageous for India, leveraging its raw materials and quality for export growth. He expresses optimism for Indian apparel exports, calling it a positive, win-win situation for both countries.

Key Points: US Tariff Cut Benefits India Apparel Exports, Says AEPC

  • US Supreme Court strikes down Trump tariffs
  • New 10% global tariff announced
  • India's raw material advantage cited
  • BTA implementation pending
  • Positive outlook for apparel exports
2 min read

Tariff reduction good for India, says Apparel Export Promotion Council

AEPC Chairman Dr A Sakthivel says US Supreme Court's tariff ruling creates a positive, win-win scenario for India's apparel export sector.

"It's good for India that tariffs get reduced... It is advantageous for India. - Dr A Sakthivel"

By Shailesh Yadav, Tiruppur, February 21

The recent developments in US tariff policy present a positive scenario for India, particularly for the apparel sector, according to Dr A Sakthivel, Chairman of the Apparel Export Promotion Council.

The Supreme Court on Friday struck down a huge chunk of President Donald Trump's far-reaching tariff agenda, delivering a major rebuke of the president's key economic policy. The majority ruled 6-3 that the law undergirding those import duties "does not authorise the President to impose tariffs."

Following the ruling, Trump announced a sweeping new 10 per cent global tariff across all trading partners, marking what he signalled as the next phase of his trade strategy. The president defended the India trade arrangement, calling it fair and reiterating that the United States will not face duties under the pact.

"It's good for India that tariffs get reduced. And it, of course, is for all over the world. But we have an advantage because we have the raw materials itself, we can give big delivery and good quality. It is advantageous for India. Even with the Supreme Court order, we are benefited," Dr Sakthivel told ANI.

Commenting on the Bilateral Trade Agreement (BTA) negotiations with the US, he said, "The deal is done already and it's only to be implemented. After the Supreme Court order, we will have advantages, because definitely we have to negotiate and get done either 10% or less than 10% opportunity for us. So we should negotiate with US. Mr Trump has said that India is a friendly country and we will respect that."

On whether the US would now refund money collected against the tariffs imposed earlier, Dr Sakthivel expressed scepticism. "I don't think it will be done immediately. It is a concern of US importers and our buyers. So once if they get the money, maybe then we can request buyers also to refund the money."

Looking ahead, the AEPC Chairman was upbeat about prospects for Indian apparel exports. "US buyers are looking for India. Now, buyers will have more Indian goods. So this is a positive situation for us now. It's a win-win situation for us and also the USA. And as I said, it is a more positive situation for India than other countries."

- ANI

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Reader Comments

S
Sarah B
While the potential is good, I'm skeptical about the refunds. Our exporters have already paid those tariffs. The council chairman is right to be doubtful. The US importers getting the refund doesn't guarantee it will be passed back to Indian manufacturers.
P
Priya S
Win-win situation as Dr. Sakthivel says! Our raw material advantage is key. But we must ensure this benefit reaches the small and medium enterprises, not just the big players. Need strong negotiation to lock in that "less than 10%" rate.
R
Rohit P
Good for exports, but what about the domestic market? We should also focus on 'Vocal for Local'. Hope the government balances this external push with policies that strengthen our own textile industry for Indian consumers.
M
Michael C
Interesting analysis. The Supreme Court's check on executive power in the US has direct positive effects here. It shows how interconnected global trade governance is. A stable, rules-based system ultimately benefits manufacturing nations like India.
K
Kavya N
Positive news, but let's not get carried away. The US calling India "friendly" is good diplomacy, but trade is about hard numbers. Our negotiators must be sharp to convert this political goodwill into tangible, long-term tariff advantages. Jai Hind!

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