Panipat Textile Hub Reels Under US Tariff Shock
Panipat’s thriving textile export industry is facing a major crisis following the imposition of a 50% US tariff on its products. This significant hike, effective August 6, 2025, threatens to cripple businesses heavily reliant on the American market.
The US is the primary export destination for Panipat’s textile manufacturers, with Christmas season orders forming a crucial part of their annual revenue. The new tariff dramatically increases production costs, severely impacting their price competitiveness.
Exporters are now struggling to fulfill existing orders and fear losing future contracts. Many are facing potential layoffs and business closures due to the sudden surge in costs.
Industry bodies are urgently appealing to the Indian government for financial incentives and export diversification support. Efforts are underway to explore alternative markets in Europe and the Asia-Pacific region.
The situation highlights the vulnerability of Indian businesses to global trade policies. The government’s response will be crucial in mitigating the impact on this vital sector and ensuring the livelihoods of thousands of workers.
