Country-Wise Tariffs on Indian Garments 2025

Why Fashion Brands Must Know Global Import Duties Before Sourcing from India

Sourcing garments internationally is more than finding the right designs or reliable production timelines—it’s also about understanding the tariffs imposed by different countries. These tariffs can significantly impact your landed cost, profit margins, and final retail pricing.

If you're a fashion brand sourcing from a clothing manufacturer in India, it’s critical to understand how much you'll pay in import duties when the garments arrive in your country. A lack of awareness could mean miscalculating your costs—or worse, pricing yourself out of the market.

This blog breaks down the updated import duties on Indian garments in 2025, covering key markets like the United States, the United Kingdom, the European Union, the UAE, Australia, Japan, and more. You'll also learn how your garment manufacturing partner in India can support you with trade compliance and cost optimization.

Overview of Tariffs Imposed by Different Countries in 2025

If you're a fashion brand planning to import garments from India, it's important to know the import duties or tariffs applied in your country. These costs can affect your product pricing and profit margins. Below is a simplified and updated guide to the tariffs imposed by different countries when sourcing garments from India in 2025.

🇺🇸 United States

Tariffs: Currently, a baseline 10% tariff is in effect on Indian apparel imports.

Trade Scheme: India does not currently benefit from any preferential trade agreements with the U.S., such as GSP (Generalized System of Preferences), which was withdrawn in 2019. However, there is an active and ongoing dialogue between the two countries about a “zero-for-zero” reciprocal tariff agreement.

If this deal materializes, it could lead to very low or even zero tariffs on certain categories of bilateral trade, including textiles and apparel. This is particularly relevant as the temporary 90-day tariff waiver (ending July 9, 2025) offers both governments a window to negotiate an interim or long-term trade deal.

👉 Until such a deal is finalized, Indian exporters must prepare for a 10% baseline tariff, with the possibility of an additional 26% if the suspended reciprocal tariff is reinstated after July 9, 2025.

Details:

The U.S. tariff landscape for Indian apparel imports has been notably volatile in 2025:

• April 2, 2025: The Trump administration announced a 26% reciprocal tariff on imports from India, in addition to a universal 10% baseline tariff on all imports, effective April 5, 2025.

• April 9, 2025: A 90-day suspension of the 26% reciprocal tariff was implemented, reducing the effective tariff on Indian apparel to 10% during this period.

• May 28, 2025: The U.S. Court of International Trade ruled that the administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA) by imposing these tariffs, effectively blocking them.

• May 29, 2025: A federal appeals court granted an emergency stay, allowing the tariffs to remain in effect temporarily while the legal process continues.

Current Status (as of May 30, 2025):

• Indian apparel imports to the U.S. are subject to a 10% tariff.

• The 26% reciprocal tariff is suspended until July 9, 2025.

• Legal proceedings are ongoing, and the situation remains fluid.

Note: Given the dynamic nature of U.S. trade policies, it's crucial for exporters and importers to stay informed about the latest developments.

🇬🇧 United Kingdom

Tariffs: Currently, Indian garments entering the UK are subject to standard Most Favored Nation (MFN) tariffs, typically ranging between 8% and 12%, depending on the specific product category.

Trade Scheme: India and the UK concluded negotiations for a Free Trade Agreement (FTA) on May 6, 2025, after over three years of discussions. While the FTA has been finalized, it is pending ratification by both countries and is expected to come into effect after the necessary legislative processes are completed. Reuters+4India Briefing+4The Times of India+4

Details:

• Tariff Reductions: Under the finalized FTA, once implemented, Indian businesses will enjoy nearly tariff-free access to British markets, with 99% of Indian exports, including textiles and apparel, expected to benefit from zero-duty access. India Briefing+1Reuters+1

• Market Access: The agreement aims to double bilateral trade from the current $60 billion to $120 billion by 2030, enhancing economic cooperation between the two nations. The Economic Times+1The Economic Times+1

• Implementation Timeline: While the FTA has been finalized, it is expected to take over a year to implement fully, as both countries complete their respective ratification processes. Reuters+1India Briefing+1

Note: Until the FTA comes into force, Indian exporters should continue to factor in the existing MFN tariffs when planning shipments to the UK.

🇪🇺 European Union

Tariffs: Currently, Indian garments entering the EU are subject to tariffs ranging between 0% and 12%, depending on the specific product category.

Trade Scheme: India qualifies under the Generalized Scheme of Preferences (GSP), allowing for reduced or zero tariffs on eligible products that meet the GSP rules.

Details:

The European Union is India's largest trading partner, accounting for over $137 billion in bilateral trade during the 2023-24 fiscal year. AP News+1www.ndtv.com+1

Negotiations for a Free Trade Agreement (FTA) between India and the EU have been ongoing, with both parties reaffirming their commitment to finalizing the agreement by the end of 2025. Reuters

Key Points:

• Ongoing Negotiations: India and the EU have concluded the 11th round of FTA talks, with discussions covering trade in goods, services, investment protection, and geographical indications. India Briefing+2IndBiz | Economic Diplomacy Division+2The Times of India+2

• Tariff Reductions: The EU is seeking significant reductions in tariffs on automobiles, wines, and spirits, while India aims for greater access to the EU market for its textiles, garments, and leather products. www.ndtv.com

• Environmental Regulations: India has expressed concerns over the EU's Carbon Border Adjustment Mechanism (CBAM), which could impose additional costs on Indian exports like steel, aluminum, and cement. Moneycontrol+2reddit.com+2IASPOINT+2

• Market Access: India is advocating for improved access to the EU's services sector and a more flexible visa regime for its professionals. Moneycontrol

Note: While the FTA is still under negotiation, Indian exporters can continue to benefit from the GSP scheme, provided their products meet the necessary criteria. It's essential to stay updated on the progress of the FTA talks, as the final agreement could significantly alter the tariff landscape for Indian garments entering the EU market.

✅ Many European brands choose a private-label clothing manufacturer in India to benefit from duty savings under GSP.

🇦🇪 United Arab Emirates (UAE)

Tariffs: Under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), effective since May 1, 2022, the UAE eliminated a 5% import duty on Indian readymade garments, granting immediate zero-duty access to Indian textile and apparel exports. HKTDC Research+2LEA Global+2Indian Trade Portal+2

Trade Scheme: CEPA is a bilateral free trade agreement that significantly enhances market access for Indian exporters in the UAE.

Details:

• Tariff Elimination: CEPA removed 80% of tariffs on goods traded between India and the UAE, with plans to eliminate all tariffs within 10 years. HKTDC Research

• Market Access: The agreement covers over 10,000 tariff lines, providing Indian exporters with broader access to the UAE market. Indian Trade Portal

• Trade Volume: India's apparel exports to the UAE amounted to approximately US$1.51 billion, representing about 43% of the UAE's total apparel imports. LEA Global

Note: Exporters should ensure compliance with CEPA's rules of origin and other regulatory requirements to benefit from the preferential tariffs.The Times of India+2The Times of India+2Horizonbizco+2

🇨🇦 Canada

Tariffs: As of 2025, Indian garments entering Canada are subject to the Most Favored Nation (MFN) tariff rates, which vary by product category.

Trade Scheme: India and Canada are negotiating an Early Progress Trade Agreement (EPTA) as a precursor to a Comprehensive Economic Partnership Agreement (CEPA).India Briefing

Details:

• Trade Negotiations: The EPTA aims to enhance bilateral economic cooperation and is expected to lead to reduced tariffs on textiles and garments upon finalization. India Briefing

• Diplomatic Relations: Following a leadership change in Canada, there is renewed optimism for strengthening India-Canada trade relations. India Briefing

Note: Until the EPTA or CEPA is finalized, Indian exporters should continue to factor in the existing MFN tariffs when exporting garments to Canada.

🇦🇺 Australia

Tariffs: Under the Australia-India Economic Cooperation and Trade Agreement (AI-ECTA), effective since December 29, 2022, 96% of Indian exports to Australia are now tariff-free, with full coverage expected by January 1, 2026. DFAT+7DFAT+7The New Indian Express+7

Trade Scheme: AI-ECTA is a bilateral free trade agreement that significantly enhances market access for Indian exporters in Australia.Horizonbizco+14Department of Agriculture+14Austrade+14

Details:

• Tariff Elimination: Australia has committed to eliminating tariffs on 100% of its tariff lines for Indian goods, with immediate zero-duty access on 98.3% of tariff lines. India Briefing+2Indian Trade Portal+2World Trade Organization+2

• Market Access: The agreement provides Indian exporters with improved access to the Australian market, particularly benefiting labor-intensive sectors like textiles and garments.

Note: Exporters should ensure compliance with AI-ECTA's rules of origin and other regulatory requirements to benefit from the preferential tariffs.

🇯🇵 Japan

Tariffs: Under the India-Japan Comprehensive Economic Partnership Agreement (CEPA), which came into effect in 2011, Japan has progressively reduced or eliminated tariffs on a wide range of Indian exports, including textiles and garments. indiantradeportal.in

Trade Scheme: The CEPA is a bilateral free trade agreement between India and Japan that aims to enhance economic cooperation by eliminating tariffs and promoting trade in goods, services, and investments.

Details:

• Tariff Elimination: Japan has undertaken immediate tariff liberalization on several products of India's export interest, such as textiles, seafood, chemicals, and more. indiantradeportal.in

• Market Access: The agreement provides Indian exporters with improved access to the Japanese market, particularly benefiting sectors like textiles and garments.

• Trade Volume: While specific figures for 2025 are not available, the CEPA has historically facilitated increased trade between India and Japan, with textiles being a significant component.

Note: Exporters should ensure compliance with CEPA's rules of origin and other regulatory requirements to benefit from the preferential tariffs.

Why These Tariffs in Indian Garments Matter for Fashion Brands Sourcing from India

Understanding the tariffs imposed by different countries helps you:

• ✅ Optimize your sourcing destinations based on import duty rates

• ✅ Improve your landed cost calculation and pricing strategy

• ✅ Work closely with your garment manufacturer to ensure compliance with documentation and trade rules

• ✅ Avoid delays, penalties, and surprise costs

For example:

• A U.S. brand importing 5,000 units could pay $7,500+ in duties—an avoidable cost with better planning

• An Australian or UAE brand can enjoy zero duties, giving them a huge pricing advantage

Your Trusted Garment Manufacturer in India

If you're looking for a reliable garment manufacturer in India, NoName is your ideal partner.

We’re not just manufacturers, we’re experts in trade compliance, HS code classification, and FTA documentation. Whether you're targeting low-tariff markets like Australia and Japan or navigating high-duty regions like the U.S. and Canada, NoName ensures your business remains competitive.

Why Global Brands Choose NoName:

• ✅ Experts in FTA paperwork (CEPA, ECTA, GSP, DCTS)

• ✅ Flexible order sizes – ideal for startups & growing brands (Flexi MOQ)

• ✅ Experience with sustainable fashion production

• ✅ On-time delivery and superior garment quality

• ✅ Trusted by dozens of fashion brands sourcing from India

Final Thoughts: Don’t Let Tariffs Catch You Off Guard

In today’s competitive market, even a 5% tariff difference can make or break your profit margin. Whether you’re selling basics, fashion-forward pieces, or private-label apparel, understanding the tariffs imposed by different countries is essential to your growth strategy.

Ready to Simplify Your Global Sourcing?

Partner with NoName, a top-rated clothing manufacturer in India that understands not only how to make beautiful garments, but also how to navigate global trade and import regulations.

📩 Contact us today to discuss your next collection, pricing strategy, and sourcing goals.

WhatsApp: +91-9717 508 508

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