US Tariff on Clothing from India

India is a growing source of clothing imports to the United States, with particular strength in cotton garments, silk products, and embroidered or hand-crafted textiles. The current total tariff rate is 26.5%.

The tariff breakdown: 16.5% MFN base rate (average for HTS chapters 61-62) plus 10% Section 122 tariff. Before the SCOTUS ruling, India faced 18% under the IEEPA plus the MFN rate, totaling approximately 34.5%. The ruling reduced the base from 18% to 10%, saving about 8.5 percentage points.

India's clothing exports to the US are concentrated in several categories: cotton basics and casual wear, embroidered and decorated garments, silk and silk-blend clothing, traditional textiles adapted for Western markets, and uniforms and workwear. India's strength in natural fibers (cotton, silk, linen) differentiates it from synthetic-focused manufacturers in Vietnam and China.

At 26.5%, India's rate is identical to Vietnam and Bangladesh, and significantly lower than China's 34%. However, Mexico at 0% (USMCA) remains far cheaper for qualifying goods. India's competitive advantages include lower labor costs than China, strong cotton textile infrastructure, and specialization in hand-embellished and artisanal garments that command premium prices where the tariff percentage has less impact on the final retail margin.

India's government has been actively promoting textile exports through production-linked incentive schemes and textile parks. The Mega Integrated Textile Region (MITRA) parks aim to boost India's share of global apparel manufacturing. For US importers, this means improving quality, capacity, and reliability.

Risk factors include the Section 122 expiry (~July 24, 2026) and potential new Section 301 investigations. India-US trade negotiations are ongoing but no comprehensive FTA is expected in the near term.