India, July 31 -- India's garments exports - that have stagnated in the $16-18 billion range over the last 10 years - now face an additional threat. Effective August 1, the Trump administration has more than doubled the tariff on Indian exports to 25%, with a threat of an additional penalty. Major apparel supplier Vietnam, on the other hand, recently secured a last-minute deal to cap US tariffs at 20% on many of its exports - giving it further advantage against India - while Bangladesh, another major competitor, is looking to secure a similar deal as Vietnam in the next few days.

The US imported almost $85 billion worth of garments in 2024, of which India accounted for about $10.5 billion. While the latest tariff announcement can be seen...