← External Forces: Trade, Geopolitics & Market Access (all topics)
US reciprocal tariff - textiles & apparel
What it is
US tariffs on Indian goods rose to an effective 50% in Aug 2025, then fell to around 18% under the Feb 2026 understanding tied to Russian crude purchases. Textiles and apparel were among the most exposed categories
Bangladesh, Vietnam and other competitors face their own rates, so relative position matters more than the absolute level
Impact on industries
- At 50% Indian apparel was effectively priced out of its largest export market, and orders shifted to competitors during the period
- Reduction to ~18% restored viability, and India's position relative to Bangladesh and Vietnam is what determines order flow rather than the rate itself
- India-UK CETA in force from Jul 2026 removed the 12% UK apparel duty, and a concluded EU negotiation offers a second large market
- Market diversification across 40 priority countries and 16 FTAs is the structural response, though the US remains irreplaceable in scale