Trump’s Tariffs Reshape Global Textile Trade—India Gains an Advantage

The Indian textile industry has emerged as a winner after US President Donald Trump imposed sweeping tariffs on global textile imports. While Vietnam, Bangladesh, and China face significantly higher duties, India’s comparatively lower tariffs provide a market advantage in the US.

How Trump's Tariffs Shift Textile Trade in India’s Favor

• Vietnam’s textile exports now face a 46% tariff, significantly raising costs for US buyers.

• Bangladesh's exports are hit with a 37% tariff, eroding its competitive pricing.

• China—the largest textile supplier to the US—faces a 54% tariff, further driving up costs.

In contrast, India’s tariff rates remain relatively lower, increasing its attractiveness as a sourcing destination for US retailers.

India’s Growing Presence in the US Textile Market

• In 2024, the US imported $107.72 billion worth of textiles.

• China accounted for $36 billion (30%) of these imports, followed by:

  • Vietnam: $15.5 billion (13%)

  • India: $9.7 billion (8%)

  • Bangladesh: $7.49 billion (6%)

• While Bangladesh’s share declined due to political instability in 2024, India maintained stable growth, setting the stage for a stronger market position in 2025.

India’s Textile Industry Pushes for Zero-Duty Policy

The Apparel Export Promotion Council (AEPC) has approached India’s Ministry of Textiles to propose a ‘zero for zero’ duty policy on textiles and apparel.

• The AEPC argues that if India removes its 11% import duty on cotton, the US may reciprocate with zero-duty access for Indian textile exports.

• Such a policy shift could further strengthen India’s textile exports and drive long-term gains for Indian manufacturers.

“If India reacts by withdrawing import duty on cotton from 11% to 0%, it will benefit both countries. Now the ball is in India's court,” said K Venkatachalam, Chief Advisor, Tamilnadu Spinning Mills Association.

Market Sentiment and Stock Impact

Analysts predict a near-term slowdown in global textile demand, as buyers wait for possible tariff negotiations. However, if the tariffs remain, the US will still need to source apparel, and India will become a preferred destination for textile sourcing.

Which Indian Textile Companies Will Benefit?

Industry experts believe leading Indian textile manufacturers with significant US exposure will benefit the most from Trump’s tariff move.

Companies expected to gain include:

• Trident

• Welspun India

• Arvind

• KPR Mill

• Vardhman

• Page Industries

• Raymond

• Alok Industries

These companies derive 20% to 60% of their revenue from US markets, making them potential winners from this policy shift.

Conclusion

While Trump’s tariffs have disrupted global textile trade, India now holds a competitive edge over Vietnam, Bangladesh, and China in the US apparel market. Ongoing trade negotiations, especially regarding cotton import duties, could further boost India’s exports. As the global industry adjusts to new tariff structures, Indian textile companies are well-positioned for growth in the US market.

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