Archive · 4 Aug 2025
High US Tariffs Hit Indian Textiles: Industry Seeks Relief
The US is charging high taxes, from 34-39%, on clothes and home goods India sells to the US.
This makes it harder for Indian companies to sell these items compared to countries like Vietnam.
To help, businesses want the government to stop taxing cotton brought from the US, making it cheaper.
They also want the government to help provide loans, so Indian exporters can compete better and sell their goods at lower prices.
This could boost textile exports and help businesses.
US tariffs of 34-39% on Indian textile exports impact garment and home textile sectors.
Garment exports, including knitted and woven items, face significant tariffs.
Home textile exports to the US, valued at $3 billion, are affected by a 34% duty.
Industry suggests waiving import duty on US cotton to reduce raw material costs.
Reviving the Interest Equalisation Scheme is proposed to subsidize credit for exporters.
- Who
- Indian textile exporters and the US government.
- What
- US tariffs impact Indian textile exports, including garments and home textiles.
- When
- Tariffs are currently in effect.
- Where
- US and India.
- Why
- Trade policies.
Government's Role
Industry Response
Policy Preferences
Government's Role
Industry wants import duties on US cotton waived and Interest Equalisation Scheme revived.
Industry Response
The government's current stance is not explicitly stated in the article.
- Textile Tariff Range
- 34-39%
- Knitted Garment Tariff
- 38.9%
- Woven Garment Tariff
- 35.3%
- Home Textile Exports to US
- $3 billion
- US Content for Reduced Tariff
- 20%
Sources
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