Don't want to miss the best from Business Standard?
Thursday, December 04, 2025 | 03:29 AM ISTहिंदी में पढें
US tariff, discount demands threaten Indian exporters' profit margins
Textile exporters from hubs like Tiruppur have indicated that buyers in the US are making a pitch for high discounts, urging Indian manufacturers to shoulder part of the financial strain of tariffs
 "Bangladesh import ban, Indian textile industry, ITF, CMAI, Indian retailers, domestic sourcing, apparel imports, import duty, MSMEs, textile manufacturing")
premium
The higher tariff comes at a time when India’s share of apparel import in the US market increased to 8 per cent during January-May, as against 6 per cent in the calendar year of 2024.
The profit margins of Indian companies are in danger of being hit by the 25 per cent tariff on exports to the United States (US) and possible discounts to boot.
Textile exporters from hubs like Tiruppur have indicated that buyers in the US are making a pitch for high discounts, urging Indian manufacturers to shoulder part of the financial strain of tariffs.
This is considering the fact that the average margin Indian exporters have for volume products is as low as 5 per cent, while that of fashion products is around 20 per cent.
Major US brands that source from
Topics : Indian companies US tariffs Indian exports
