Trump Announces Tariff Hike On Bangladesh & Thailand - What Does It Signify For India's Apparel Exports To US?

India's export verticals ranging from footwear to apparel are expected to benefit after gaining a pricing edge post US President Donald Trump announced his decision of imposing 35 per cent tariff on Bangladesh, and 36 per cent on Thailand.  

These duties according to Trump's latest imposition deadline will come into effect from August 1.

Currently, Bangladesh is the third largest exporter of apparel to the US, boasting of a market share of 13.15 per cent in 2024.

Meanwhile, India's exports to the US in this vertical stood at USD 2.5 billion which still has not made it among the top three.

In apparel, knitted and crocheted, Cambodia with about 6 per cent share is ahead of India, which holds 5.09 per cent market share.

The current market composition from is such that countries like Bangladesh, and Vietnam in the clothing market pose as big competitors in the U.S.

Also Read: India To Pay 10 Per Cent Tariffs If It Continues In BRICS: Trump

Meanwhile, the biggest announcement linked tariff imposition on India came in when Trump on Tuesday warned that members of the BRICS alliance would face a 10 per cent tariff if they act against American interests.

Earlier on his social media platform. Truth Social, Donald Trump said, "Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy. Thank you for your attention to this matter!”

Further, he mentioned that,“BRICS was set up to degenerate our dollars. Anybody that’s in BRICS is getting a 10 per cent charge,” Trump said, accusing the group of trying to undermine the dollar’s dominance. “The dollar is king, and we want to keep it that way. And if people want to challenge it, they will have to pay for it.”