As the US levies high tariffs on Indian and Bangladeshi clothes, international brands such as GAP, Puma, Nike, and Zara are considering Nepal as a new manufacturing target because the Nepali exports are subject to only a 10 percent tariff. Local producers are also discussing with Indian companies, which can bring the troubled garment industry in Nepal back to its feet and help solve the trade deficit. The sector that once constituted a significant foreign currency earner currently comprises only 3.2 percent of Nepal’s export earnings.
Trump’s 50% Tariffs Push Indian Garment Companies to Turn Toward Nepal
