Tariff cloud casts shadow on Kol’s 15k-unit garments hub
Times of India | 31 August 2025
Kolkata: Shadows are cast over garment manufacturing hubs at Metiabruz and Barasat with US President Donald Trump dropping his 50%-tariff bomb. As tariff clouds spread over the horizons of Indian economy, it's been a double-hit for garment-makers, with India-Bangladesh trade relations not yet back to normal.
Agents who buy products from these hubs for consignments to the US have already stopped placing orders, say manufacturers. "We don't export directly. Agents based in Kolkata and Mumbai procure them from us. With tariffs coming into effect, they have stopped sending consignments to the US, impacting garment manufacturing in the city," said Sarfaraz Hossain, a Metiabruz garment-maker.
One of the largest hubs of its kind in the country, there are over 15,000 garment manufacturing units in Metiabruz, with over five lakh workers.
Barasat's Regent Garment and Apparel Park, on the other hand, houses about 250 manufacturers. Of these, some are based in Metiabruz and had expanded to Barasat to cater to exporters. Of consignments meant for export from Kolkata, 20% are directed to the US.
"Turmoil in Bangladesh dealt a blow to our business last year. While the political situation in Dhaka is more stable now, volume of orders has not returned to the pre-turmoil phase.
US tariffs will only add to our woes. We have to bank on the domestic market," said garment-maker Dayyan Hussain.
Producers of clothes here usually get bulk orders for dresses, shirts, frocks and ethnic wear for the US and European markets. "Export orders have dropped at least 5%," said Arif Mondal.
City-based exporter Prabhas Agarwal said even as consignments for the US market were ready, they had been kept on hold.
"Had they cancelled the orders, we could have released the stock in domestic markets," he said.
Devendra Baid, secretary of West Bengal Garment Manufacturers & Dealers Association, said, "Seems like there is no immediate solution to the tariff issue. We have to bank more on the domestic market and look for alternative overseas markets. With orders on hold, payments of agents are also stuck." Baid is also the MD of Burrabazar's Welfit Exports.
Amrit Exports MD Anil Buchasia, also Apparel Export Promotion Council chairman, said: "We had planned to invest Rs 100 crore to expand our footprint in the US. We have stalled the plan."