India is set to benefit in the US market following the Trump administration’s decision to raise tariffs on Chinese imports by 10%. While a 25% tariff hike on imports from Mexico and Canada was also announced, its enforcement has been postponed by 30 days after both nations committed to combating illegal immigration and drug trafficking.
Currently, China dominates the US textiles and apparel market, holding approximately 25% of the share. Between January and November 2024, China accounted for 24.23% of US textile and apparel imports, valued at $99.125 billion, according to the latest data from the Office of Textiles and Apparel (OTEXA).
India could utilize this opportunity to capture a larger share of the US market as higher tariffs on Chinese goods make Indian exports more competitive.
With the imposition of a 10% tariff, Chinese textiles and apparel are expected to become more expensive for US consumers. This is likely to slow down imports from China, creating a gap that could be filled by other suppliers such as India and other textile-exporting nations.
Bangladesh, the second-largest garment supplier after China, is still struggling to recover from the political upheaval of August 2024. This gives India an opportunity to capture a significant portion of the gap created by the tariffs on China. However, India’s ability to fully capitalize on this opportunity may be hindered by certain limitations. Unlike China, India lacks the capacity to produce on a large scale to meet the demands of the US market. Additionally, it faces stiff competition from other exporting nations that will also vie for a bigger share in the US market.
Despite these challenges, industry experts in India remain optimistic. They believe the recent developments present a valuable opportunity for Indian textile exporters to strengthen their foothold in the US market.
