25% tariff threatens key export sectors
"The move to impose a 25% tariff on Indian textile imports to the US is a significant setback for the industry," said Ronak Chiripal, promoter of Chiripal Group. "Such a tariff would impact price competitiveness, particularly for mid- to high-value products. While recent trade agreements with the UK and Australia are creating new opportunities, uncertainty around the US-India trade deal creates a planning and margin challenge for Indian exporters.
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The impact is expected to spill over into other key sectors as well, including chemicals and ceramics, both of which contribute significantly to Gujarat's export basket. Exporters across sectors are actively diversifying markets and product lines, emphasizing the need for a stable, predictable trade environment to sustain manufacturing growth and long-term customer relationships.
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Ankit Patel, regional chairman – north region, Chemexcil, said, "The US is the top export destination for Indian chemical products, so the 25% tariff will deal a significant blow to the industry.
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Since chemicals are industrial inputs, businesses cannot easily pass on the cost to end users, making it harder to absorb the impact. We expect the real impact to start showing in the coming months."
Trade experts say the development could re-ignite pressure for an expedited bilateral trade pact with the US, especially as geopolitical dynamics are rapidly shifting. Nilesh Jetpariya, former president of the Morbi Ceramic Association, said, "The Morbi ceramics industry will be impacted, but we are closely analysing the tariff structure on other key ceramic-supplying countries.
Last year, there was a process to impose anti-dumping duties on Indian ceramic products, which led to the US share in our exports falling to 7.5% from 9.5% the year before.
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He added, "The competitiveness of our exports now depends on how countries like Italy, Spain, Mexico, Brazil, and Turkey — all major ceramic exporters to the US — are treated under the new tariff regime. If they too face similar tariffs, the playing field remains level. Currently, our ceramic products attract around 8.5% basic duty and 3.5% anti-dumping duty, along with a 10% tariff. An additional 15% tariff hike will have a negative impact, but we've seen that Morbi continues to export to Mexico despite a 25% duty — which shows that we remain cost-competitive compared to many global players.
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