US Tariffs Slam India's Textile Industry, Threatening Thousands of Jobs

US Tariffs Unravel India's Textile Industry LUDHIANA, INDIA - SEPTEMBER 16, 2025 The US tariffs imposed on Indian textiles have sent shockwaves through the industry, putting thousands of jobs at risk. The 50 percent tariffs, implemented by President Donald Trump in July, have already started to take their toll on India's textile sector. For Pankaj Kumar, a 29-year-old spinner at a Ludhiana mill, the uncertainty is palpable. "I don't know what will happen," he said, his fingers moving swiftly as he knots loose threads onto a spinning wheel. "The factory owner was saying we are unsure how much to manufacture in the coming months." Kumar's income of 18,000 rupees (203.87 USD) per month is uncertain, and he fears being laid off. The mill produces woollen knitwear, hosiery, and other garments destined for the US market. India's textile industry is a significant employer, with millions of workers relying on it for their livelihoods. The sector accounts for around 10 percent of India's GDP and exports over $40 billion worth of textiles every year to countries like the US, UK, and Germany. The tariffs are a result of a long-standing trade dispute between the two nations. In July, the US imposed 50 percent tariffs on Indian textiles, citing unfair trade practices. The move has been met with criticism from India's textile industry, which argues that it will lead to job losses and economic instability. "We have been warning the government about this for months," said Rakesh Aggarwal, a textile industry expert. "The US tariffs are a major blow to our industry, and we fear that many factories may shut down or reduce production." The Indian government has promised to take steps to mitigate the impact of the tariffs, including providing financial assistance to affected industries. However, experts say more needs to be done to support the sector. "The government needs to provide immediate relief to the textile industry," said Aggarwal. "We need a comprehensive plan to help factories adapt to the new tariffs and protect jobs." As the situation unfolds, Kumar's future remains uncertain. "I just hope that something is done soon," he said, his eyes fixed on the spinning wheel. Background: India's textile industry has been facing challenges in recent years due to rising raw material costs, increasing competition from China, and a decline in exports. The US tariffs have added to these woes, making it difficult for Indian manufacturers to compete in the global market. Additional Perspectives: The US tariffs on Indian textiles are part of a broader trade dispute between the two nations. In June, the US imposed 25 percent tariffs on Indian steel imports, citing national security concerns. India has retaliated with its own set of tariffs on US goods. Current Status and Next Developments: As the situation continues to unfold, industry experts predict that many factories may shut down or reduce production due to the high tariffs. The Indian government is expected to announce a comprehensive plan to support the textile sector in the coming weeks. In the meantime, Kumar's livelihood hangs in the balance. "I just hope that something is done soon," he said, his eyes fixed on the spinning wheel. *Reporting by Aljazeera.*