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What is the story about?
India hasn't received an exemption for textiles and apparel under the new tariffs under Section 301 of the US' Trade Act (1974), which penalises countries for allegedly using forced labour in making products exported to America. India is one of 17 countries, including Canada, Bangladesh, and Pakistan, that face an additional 10% tariff starting tomorrow.
However, specified volumes of textile and apparel exports from Bangladesh, Cambodia, Indonesia, and Malaysia using US-origin cotton and fibre are exempt from the new duty, the Global Trade Research Initiative, a New Delhi-based think tank, explained on Friday (July 24).
While there's a loss of competitive edge for Indian exporters, there's no added tariff burden on Indian textile exporters to the US, who have been subjected to 10% added duty since February after the American Supreme Court struck down the levies imposed by the Donald Trump administration under the International Emergency Economic Powers Act (IEEPA).
Between August 2025 and US Supreme Court's decision in February, most manufactured goods, engineering products, textiles, chemicals, machinery, plastics, leather, furniture, gems and jewellery faced a 50% tariff over and above the applicable rate for countries in America's Most Favoured Nation (MFN) list.
Most textile stocks traded lower in early trade on Friday morning after the Trump administration unveiled new tariff rates.
Read more: Life insurance stocks in India are valued less despite good growth
However, specified volumes of textile and apparel exports from Bangladesh, Cambodia, Indonesia, and Malaysia using US-origin cotton and fibre are exempt from the new duty, the Global Trade Research Initiative, a New Delhi-based think tank, explained on Friday (July 24).
While there's a loss of competitive edge for Indian exporters, there's no added tariff burden on Indian textile exporters to the US, who have been subjected to 10% added duty since February after the American Supreme Court struck down the levies imposed by the Donald Trump administration under the International Emergency Economic Powers Act (IEEPA).
| INDIAN EXPORTS TO THE US | 2025 | Jan-May 2026 |
| OTHER MADE UP TEXTILE ARTICLES; SETS; WORN CLOTHING AND WORN TEXTILE ARTICLES; RAGS | $2.8 bn | $1.05 bn |
| CARPETS AND OTHER TEXTILE FLOOR COVERINGS. | $1.1 bn | $472 mn |
| IMPREGNATED, COATED, COVERED OR LAMINATED TEXTILE FABRICS; TEXTILE ARTICLES OF A KIND SUITABLE FOR INDUSTRIAL USE. | $179 mn | $66.3 mn |
| OTHER VEGETABLE TEXTILE FIBRES; PAPER YARN AND WOVEN FABRICS OF PAPER YARN. | $101 mn | $45 mn |
| SPECIAL WOVEN FABRICS; TUFTED TEXTILE FABRICS; LACE; TAPESTRIES; TRIMMINGS; EMBROIDERY. | $46.6 mn | $21.5 mn |
| ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, NOT KNITTED OR CROCHETED. | $2.7 bn | $1.08 bn |
| ARTICLES OF APPAREL AND CLOTHING ACCESSORIES, KNITTED OR CORCHETED. | $2.6 bn | $1.05 bn |
| TOTAL | $9.9 bn | $4.9 bn |
Between August 2025 and US Supreme Court's decision in February, most manufactured goods, engineering products, textiles, chemicals, machinery, plastics, leather, furniture, gems and jewellery faced a 50% tariff over and above the applicable rate for countries in America's Most Favoured Nation (MFN) list.
Most textile stocks traded lower in early trade on Friday morning after the Trump administration unveiled new tariff rates.
Share prices as at 10:30 am on July 24.
Read more: Life insurance stocks in India are valued less despite good growth
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