Ahmedabad: Gujarat’s textile industry is staring at a crisis following the US government’s decision to impose a 50% tariff on all imports from India — a move that industry leaders warn could push many exporters out of business. Stakeholders are urging the Centre to intervene with urgent relief measures, including a 10% export incentive to cushion the blow.

The tariff was announced by US President Donald Trump in two phases — an initial 25% levy on Indian imports, followed by an additional 25% penalty in response to India’s continued purchase of Russian oil. The Indian government has condemned the decision and refused to halt Russian crude imports.

The impact is particularly acute for Gujarat, home to major hubs like Ahmedabad and Surat, which contribute over 15% of India’s annual USD 10–12 billion textile exports to the US. Industry representatives say the steep duty has made trade with America “almost impossible,” creating a risk of massive job losses, liquidity shortages, and widespread unit closures.

According to a report, Surat — known for its synthetic fabric exports — could see direct losses of ₹3,000–₹4,000 crore and an indirect hit of up to ₹12,000 crore due to the interdependence of allied industries. In Ahmedabad, exporters fear that production shutdowns may force artisans to migrate in search of work.

Industry bodies are pressing the central government for swift action, suggesting a 10% export incentive to help reroute goods to other markets such as Europe, West Asia, and Latin America. However, experts caution that replacing the US market in the short term will be challenging, and the sector’s revival may hinge as much on foreign policy decisions as on economic measures. DeshGujarat