Archive · 19 Aug 2025
US Tariffs and Cotton Duty Impact Indian Trade
The US is putting taxes (tariffs) on goods from India.
This could affect about $48 billion worth of Indian exports to the US.
In response, India has also put tariffs on some US goods.
To help its textile businesses, India has stopped taxing cotton imports until September 30th.
This helps these businesses by making their raw materials cheaper.
The Indian government is working to lessen the negative effects of the US tariffs by finding new markets and promoting exports.
Textile companies are hopeful about the tariff changes and cotton duty removals.
US tariffs of 25% have been imposed on certain Indian goods, potentially impacting $48.2 billion of exports.
India has imposed reciprocal tariffs of 25% on select US goods.
The Indian government aims to mitigate the impact of US tariffs through export promotion and trade diversification.
India removed the 11% import duty on cotton until September 30 to support its textile sector.
Stocks of textile companies such as Vardhman Textiles and Ambika Cotton increased after the announcement of the duty removal.
- Who
- US and Indian governments, textile companies.
- What
- The US imposed tariffs on Indian goods, and India removed import duties on cotton.
- When
- US tariffs are in effect, cotton import duty removal until September 30, 2025.
- Where
- The US and India.
- Why
- The US imposed tariffs, and India aims to support its textile sector.
US Government
Indian Businesses
Tariff Imposition and Impact
US Government
Imposing tariffs on Indian goods.
Indian Businesses
Mitigating the impact of tariffs through various strategies.
- Affected Indian Exports
- $48.2 billion
- Reciprocal Tariffs
- 25% on certain US goods
- Cotton Import Duty Exemption
- Until September 30, 2025
- Impacted Sectors
- Textiles
Sources
US tariff shock: India’s domestic demand may cushion job losses. Here’s how to safeguard your career
From China+1 to India+1: Jolted manufacturers look for business beyond the US
US tariffs threaten to derail India’s growth ambitions, Moody’s Analytics warns
Uncertain times for diamond workers as tariff threatens trade
Govt scraps duty on cotton imports till Sept 30 amid US tariffs pressure
Retail investors' verdict: Tariffs can’t trump a good bet
GST reform isn’t the only catalyst that the equity markets need
Moody’s Warns US Tariffs To Hit Indian Exports ‘Very Substantially’
Pharma sector faces tariff threats amid rising US trade actions: Report
Nomura warns 25% penalty tariff on India not fully priced in by foreign investors
Amid US Tariffs, India Suspends Cotton Import Duties Temporarily To Aid Textile Sector
Direct US tariff impact on India’s growth may be overstated for now, but high employment-intensiveness of US-focused trade sectors a looming worry
Additional US tariffs to impact $48 billion of India’s exports, govt to safeguard trade: Minister
