Indian textile exporters could rejoice with US slapping additional 100% tariff on Chinese goods, but uncertainty prevails

The US is India’s largest market for textiles and apparel with a share of nearly 30 per cent of the total $38 billion. | Photo Credit: PRIYANSHU SINGH

The latest imposition of 100 per cent tariff by the US on Chinese textiles takes the latter’s total tariff to 130 per cent from November 1. While this has raised the hopes of the Indian textile industry, uncertainty still prevails.

Indian products may be competitive in the when compared with that of the Chinese. However, there is still uncertainty and only a bilateral trade commitment in lowering the tariff will give reassure the industry, exporters say.

Largest market for textiles

The US is India’s largest market for textiles and apparel with a share of nearly 30 per cent of the total $38 billion.

Aniket Dani, Director- Research, Crisil Intelligence, said the US announcement of imposing 100 per cent tariff on China, thereby taking the total tariff on Chinese products to 130 per cent is likely to benefit Indian textile exporters. Currently the US levies 50 per cent tariff on Indian goods.

“Tariffs on India are still higher than other competing countries like Bangladesh and Vietnam. However, imposition of 100 per cent additional tariff on China may shift the demand to India as well as its competing nations. Nonetheless, despite the announcement, the signing of an FTA with the UK will prove to be a boon for Indian textile manufacturers. UK FTA coupled with positive outcome of ongoing trade negotiations with the EU will further provide boost to the sector,” said Dani

Raja M Shanmugham of Warsaw International and former president of Tiruppur Exporters Association, “What announcement will come next, nobody knows. We need to watch around without getting into any conclusions.”

Currently, exporters are completing booked orders by agreeing on a 10-20 per cent discount range. But, new orders are not coming in because of the tariffs on India.

“Everyone is blinking and expecting a trade agreement soon to keep going. Many companies are planning to extend the festival holidays to a possible extent to tide over the situation instead of closure announcements,” he said.

Published on October 14, 2025