Archive · 30 Jul 2026

India Gains US Tariff Edge Over Vietnam, but Challenges Remain

India Gains US Tariff Edge Over Vietnam, but Challenges Remain

The United States decided to charge a 10% tax on clothes made in India, which is lower than the 12.5% tax on clothes made in Vietnam.

This means Indian clothes could be cheaper for American buyers.

But the difference is small, so companies that already make clothes in Vietnam might not move their factories to India right away.

India’s factories are spread out across the country and mostly use cotton, while Vietnam and Bangladesh use more synthetic fabrics and have big, connected factories.

To really compete, India will need better quality, faster delivery, and greener factories, plus new trade deals with places like Europe.

Sources