Exporters Eye Gains As US Tariff Hike Hits Competing Nations
India's exports to the US in this sector was USD 2.5 billion but it is not among the top three, according to an analysis by economic think tank Global Trade Research Initiative
India's export sectors such as apparel and footwear are expected to gain a competitive edge in the US market following Washington's decision to impose higher tariffs on over a dozen countries, including Bangladesh and Thailand, exporters said.
On Monday the Donald Trump administration announced a 25 per cent tariffs on Japan, South Korea, Kazakhstan, Malaysia, Tunisia; 30 per cent on South Africa, Bosnia and Herzegovina; 32 per cent on Indonesia; 35 per cent on Bangladesh, Serbia; 36 per cent Cambodia, Thailand; and 40 per cent tariffs on Laos and Myanmar.
These duties will come into effect from August 1.
Bangladesh is the third biggest exporter of apparel (not knitted or crocheted) to the US with a market share of 13.15 per cent in 2024.
India's exports to the US in this sector was USD 2.5 billion but it is not among the top three, according to an analysis by economic think tank Global Trade Research Initiative (GTRI).
In apparel knitted and crocheted, Cambodia with about 6 per cent share is ahead of India (5.09 per cent).
"India faces stiff competition from Bangladesh and Vietnam in the US garment market. High duties on Bangladesh will help enhance competitiveness of Indian products in the US market," an exporter said.
Federation of Indian Export Organisations (FIEO) President SC Ralhan said that sectors like leather and apparel may get competitive advantage from India's competitor countries.
A Mumbai-based exporter said that the elevated duties on Thailand can lead to gains in exports of rubber and its articles.
Thailand is the top exporter of rubber to the US with a share of 15.16 per cent while India is at fourth spot with 2.93 per cent share of US imports.
"We will get greater advantage in the leather segment also," the export added.
(This report has been published as part of the auto generated syndicate wire feed.Apart from the headline,no editing has been done in the copy by ABP Live.)
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