US Tariffs Hit Indian Textile Exports

India’s textile and apparel exporters are expected to face tougher competition after the United States imposed a new 10% tariff on Indian goods. The Confederation of Indian Textile Industry (CITI) warned that the additional duty could make Indian products less competitive than those from several Asian countries.

Under the new policy, Bangladesh, Cambodia, Indonesia, and Malaysia will benefit from tariff-rate quotas that exempt certain textile and apparel shipments made with U.S.-origin cotton and fibre from the additional duty. Industry leaders fear this preferential treatment could shift sourcing orders away from India, whose textile exports to the U.S. are valued at nearly $11 billion annually.

Trade experts estimate that around 70% of India’s exports to the U.S., including garments, machinery, chemicals, leather goods, gems and jewellery, and furniture, will be affected by the new levy. While the tariffs cover most imports, products such as oil, gas, fertiliser, and selected food items remain exempt.

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