What's Happening?
A new trade framework between the US and India, announced by President Trump and Prime Minister Modi, aims to reduce tariffs on Indian exports to the US. The agreement, pending formal implementation, could
lower tariffs from 50% to 18%, benefiting the fashion industry. India, a key apparel supplier, could see increased viability as a sourcing destination within 'China-plus' strategies. However, the framework lacks ratification, leaving critical details unconfirmed. The potential tariff reduction could boost India's apparel exports to the US, particularly in cotton-based products, enhancing its competitive position.
Why It's Important?
The US-India trade framework represents a significant opportunity for the fashion industry to diversify its supply chains and reduce costs. By lowering tariffs, the agreement could enhance India's role as a manufacturing base, providing an alternative to China. This move could stabilize supply chains disrupted by previous tariff volatility and geopolitical risks. For US fashion brands and retailers, the framework offers a chance to recalibrate sourcing strategies, potentially unlocking billions in additional business. The agreement's success depends on its formalization and the resolution of outstanding details.
