India to counter Trump’s steep textile tariffs with outreach in 40 countries
Targeted plan aims to boost market share in $590B global textile trade
Jeffrey Sachs says tariffs won’t pressure India, urges closer ties with BRICS, RCEP
Amid rising trade tensions between the US and India, New Delhi is planning to counter Donald Trump’s 50% tariffs on textiles through dedicated outreach programs in 40 countries. On the other hand, American economist Jeffrey Sachs has recommended India to strengthen its ties with emerging economies to tackle with the situation.
The additional 25% tariff imposed by Trump on India for its purchases of Russian oil came into effect on Wednesday, bringing the total amount of levies imposed on New Delhi to 50%.
The Department of Homeland Security said the increased levies would hit Indian products that are “entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 am eastern daylight time on August 27, 2025”.
Trump had announced reciprocal tariffs of 25% on India that came into effect on August 7, when tariffs on about 70 other nations also kicked-in. However, India has its plan to deal with the tariffs.
How India Plans to Counter?
The outreach program include countries like Canada, France, Germany, Italy, Japan, Mexico, Poland, Russia, Spain, South Korea, Turkiye, Australia, Belgium, the Netherlands, the United Arab Emirates, and the UK. The official, as quoted by PTI, stated that a proposal will be share with each of the 40 countries.
The proposal is to “pursue a targeted approach, positioning itself as a reliable supplier of quality, sustainable, and innovative textile products”. The official noted that Indian industry bodies, export promotion councils, and overseas missions will play a central role in the initiative.
While India already exports to over 220 countries, the 40 markets identified for focused engagement are seen as critical for driving diversification. Together, these 40 countries represent more than $590 billion in textile and apparel imports, offering vast opportunities for India to enhance its market share.
Currently, this market share stands at only around 5-6%. “Recognising this, the government is planning dedicated outreach programs in each of these 40 countries, with a focus on both traditional and emerging markets,” the official added.
What Jeffrey Sachs Suggests for India?
While the Trump tariffs are unlikely to succeed in pressuring India, Sachs urged India to strengthen ties with emerging economies and consider joining regional trade blocs like RCEP, India Today reported. He stated that Trump is isolating the United States from the world economy because these tariffs are making the US industry “less competitive”.
"…I think Trump is shooting - I won't say himself in the foot - he's shooting America in the foot. He's making it less prosperous and less competitive, but he is effectively uniting the rest of the world in closer relations,” Sachs told India Today in an interview.
Sachs further rejected the notion that Washington could strong-arm New Delhi. He said the Trump administration’s belief that it could intimidate a nation of 1.5 billion people was “absurd”. While stressing the India cannot be coerced, he also cautioned against over-reliance on the US, the report said.
He argued that America is not seeking a genuine partnership with India, while suggesting the country to settle the outstanding issues with China. “I want China to support India as the sixth permanent member of the UN Security Council….want India and China to trade more and invest more mutually with each other,” he added.
