Trump referred to India as a "friend" on his Truth Social platform, but he also suggested the US will place an  "an unspecified penalty" on the apparel sourcing major for buying Russian oil and weapons.

Trump said: "I don't care what India does with Russia. They can take their dead economies down together, for all I care. We have done very little business with India, their tariffs are too high, among the highest in the world.

"Likewise, Russia and the USA do almost no business together. Let's keep it that way."

He added: "Over the years, we have done relatively little business with them [India] because their tariffs are far too high, among the highest in the world, and they have the most strenuous and obnoxious non-monetary trade barriers of any country."

Commenting, Neil Saunders, analyst at GlobalData said India's "steep tariff rate" made it far less competitive as a manufacturing hub.

He explained: "For products like apparel, where every cent matters, many retailers may now look beyond India. India’s dreams of tariffs on China sending business its way will now fade. This might not happen immediately as a lot of retailers and brands are taking a wait and see approach. However, a more certain tariff environment is now falling into place with the various trade deals, and it looks like India will be one of the losers."

Dr Sheng Lu, professor of apparel studies at the University of Delaware noted that the newly released 2025 USFIA benchmarking study shows surveyed US fashion companies see sourcing from India as carrying relatively high risks of facing additional US tariffs and trade restrictions. The newly announced tariff rate for India just proves the accuracy of the study’s findings. 

He added: "Many US fashion companies see India as an emerging sourcing destination with the potential to become a more significant alternative to China. There is also a strong interest among fashion companies to expand sourcing from the country.

"The announced 25% tariff rate and ongoing policy uncertainty could temporarily hinder US fashion companies from making new commitments, although India’s outlook as an apparel sourcing hub in the long term remains generally positive."

India said it was committed to "concluding a fair, balanced and mutually beneficial bilateral trade agreement," according to the BBC.

In March, Trump had suggested that he was keen for India to offer more substantial tariff reductions to the US with industry experts noting at the time that the country's fashion manufacturing industry would benefit "if it played its cards right".

However, at the time Trump was quoted as saying: "India charges us massive tariffs, massive, you can’t even sell anything into India. It’s almost, it’s almost restrictive. It is restrictive. We do very little business inside.”

Robert P Antoshak, Grey Matter Concepts VP of Strategic Global Sourcing and Development told Just Style at the time: "India stands more to gain than lose if it lowers tariffs. Such actions could include greater importation of cotton and synthetic fibres for textiles. An expanded supply of synthetic fibres in particular, is needed by local mills to meet the demand for clothing made with synthetics, such as activewear, where India has the potential to grow.”

Last week, India and the UK confirmed a new trade agreement with the Clothing Manufacturers Association of India (CMAI) telling Just Style a 0% import duty to the UK would be effective by late 2026 and early planning and extra fashion buyer activity expected to start soon.