New U.S. Tariffs Squeeze India’s Textile Export Dominance

The levies stem from allegations regarding the enforcement of forced-labor import prohibitions, piling new financial burdens onto existing trade barriers. For an industry that ships nearly $11 billion in apparel to the U.S. annually, the shift is more than a marginal cost adjustment; it is a structural challenge that risks diverting long-term sourcing orders elsewhere.

CITI Chairman Ashwin Chandran warned that the differential treatment creates a significant hurdle for Indian firms. While exemptions exist for garments crafted from U.S.-origin cotton and fabrics, the broader exclusion from quotas leaves many exporters vulnerable. As global brands reassess their supply chains, the ability of Indian manufacturers to retain their market share will depend on how quickly they can navigate these new regulatory requirements and prove their compliance standards to American authorities.