India textile dilemma: Can exporters survive the new US tariffs? - Textile Fashion News Fibre2Fashion Sponsored Join Our Exclusive Free Webinar on Strategic Intelligence for Apparel Sourcing Leaders | Register Now Source innovative home tex
- Textile Fashion News Fibre2Fashion Sponsored Join Our Exclusive Free Webinar on Strategic Intelligence for Apparel Sourcing Leaders | Register Now Source innovative home textile products and trends at Intertextile Shanghai Home Textiles 2026 | Explore More Connect with global textile professionals at Intertextile Shanghai | Register Today Source sustainable performance fabrics and innovations at Functional Fabric Fair | Register Now Intelligence TexPro F2F Prime News Trade Fairs & Events Marketplace Marketing Solutions Digital Advertisement Print Advertisement Webinar Marketing Media Booster Magazine Subscription Articles Advertise with Us Sign In All Categories Articles News Buyers Suppliers Trade Fairs Interview Market Intelligence F2F Prime For You Textiles Apparel Fashion Retail E-commerce Technology Sustainability Chemicals Technical Textiles News Flash Vietnam, Italy gain as global apparel imports fall 5% Upland, Pima cotton export decline sharply: USDA Bangladesh’s Chattogram Port moves a step ahead in paperless ops Pakistan's gas shock puts $18 bn T&A exports at risk Bangladesh’s banking crisis: The $15.6bn supplier exposure map Textiles | India textile dilemma: Can exporters survive the new US tariffs? 03 Jul '265 min read Pic: Generated by ChatGPT Insights USTR Section 301 tariffs may target economies over forced-labour import bans; a Textile Mechanism links lower duties to US-origin textile inputs. India is undecided on US cotton; mills weigh domestic reliance, freight, currency, product mix and traceability costs. Bangladesh and Vietnam could gain sourcing appeal, while buyers and suppliers wait for the final draft before shifting orders. At first glance, several of the countries, including India, are set to be impacted by this move, where the US plans to impose tariffs on countries violating forced labour regulations. However, an exemption titled “Textile Mechanism” allows these countries to avoid steep tariffs if they increase the use of US-origin inputs through a barter system, leading to lower tariff rates. This means a reduced duty rate directly linked to the volume of US textile inputs purchased by the * * economies named by the USTR. Countries such as Bangladesh and Vietnam are already operating on reduced tariffs in exchange for US cotton, helping reduce production costs and emerging as favourable sourcing destinations. India has not yet decided on the direction it would take when the tariffs under Section * * * go in place, but the country has already waived duty on cotton imports till October this year. Still, what about the idea of using US raw material inputs such as cotton? Are Indian exporters and manufacturers thinking about it? Sravanti Kancharla, executive director of Supriya Spinning Mills Pvt Ltd and vice chairperson of the women entrepreneurs wing at AP Chamber of Commerce and Industry Federation, in an interview with Fibre * Fashion , said India h
