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Impact Of Lower US Tariff On India’s Competitors In Textile & Apparel Trade

• By  Textile Excellence
• February 15, 2026

The revised US tariff regime continues to reshape sourcing dynamics across the global textile and apparel supply chain. India’s duty is estimated at 18%, while competing suppliers face varied rates: China above 34%, Vietnam at about 20%, Bangladesh now at 19% with fibre-linked duty waivers, Mexico around 25%, and Pakistan and Cambodia near 19%. These differences directly influence landed costs for US buyers, especially in price-sensitive categories, and are already reflected in the export trajectories of major suppliers over the last five years.

China (Tariff: 34%+)

China remains the largest textile and apparel supplier to the US but has seen a pronounced decline after its 2022 peak. Imports from China rose from about US$25.3 billion in 2020 to nearly US$32.7 billion in 2022, before dropping sharply to roughly US$18.2 billion by 2025 (till November). The contraction reflects tariff pressures, geopolitical risks, and sustained brand diversification strategies. China’s exports remain diversified across synthetic apparel, outerwear, knit tops, home textiles, and technical fabrics, but the structural downtrend indicates reduced reliance by US buyers.

Vietnam (Tariff: ~20%)

Vietnam has been the principal beneficiary of China-plus-one strategies. Exports increased from about US$13.4 billion in 2020 to US$19.7 billion in 2022, before moderating to around US$14.7 billion in 2025 (till Nov). Vietnam’s strength lies in man-made fibre apparel, sportswear, outerwear, and performance garments, supported by integrated supply chains and strong FDI-driven manufacturing clusters. The recent plateau suggests demand normalization and intensified competition as tariff advantages narrow.

Bangladesh (Tariff: 19% with Fibre-Linked Waiver)

Bangladesh’s tariff has been revised from 20% to 19%, with a major incentive: garments made using US-origin cotton or synthetic fibres now enter duty-free under the reciprocal structure. This provision creates a targeted cost advantage in fibre-linked supply chains. Over the last five years, Bangladesh’s exports to the US rose from about US$5.4 billion in 2020 to US$10.0 billion in 2022, before easing to roughly US$7.5 billion in 2025 (till Nov). The country’s core strength remains in cotton trousers, basic knitwear, and woven shirts. The new arrangement is expected to shift raw material sourcing toward US fibres and enhance Bangladesh’s competitiveness in large-volume, price-sensitive categories.

Mexico (Tariff: ~25%)

Mexico’s exports have remained relatively stable but without strong expansion. Shipments increased from about US$3.2 billion in 2020 to US$5.0 billion in 2023, before easing to roughly US$4.7 billion in 2025 (till Nov). Mexico’s primary advantage is geographic proximity, enabling fast replenishment cycles in denim, knit tops, and workwear under regional trade frameworks. However, higher labour costs and limited capacity expansion have constrained significant growth.

Cambodia (Tariff: ~19%)

Cambodia has shown gradual expansion in select segments. Exports to the US increased from roughly US$3.3 billion in 2020 to about US$4.7 billion in 2025 (till Nov). The country is concentrated in cut-and-sew knitwear, casualwear, and basic garments for value-focused retailers. Its growth reflects continued buyer interest in low-cost sourcing destinations, though overall scale remains smaller than leading Asian suppliers.

Pakistan (Tariff: ~19%)

Pakistan’s exports have followed a moderate but somewhat volatile trajectory. Shipments rose from about US$3.4 billion in 2020 to around US$5.3 billion in 2022, before stabilizing near US$4.2–4.5 billion in recent years. Pakistan’s competitive edge lies in cotton-based categories, particularly denim, home textiles, towels, and bed linen, supported by a strong upstream spinning and weaving base. However, energy costs and macroeconomic pressures have limited faster expansion.

Conclusion

Over the last five years, China has seen the sharpest contraction after peaking in 2022, while Vietnam and Bangladesh experienced growth followed by stabilization. Mexico, Cambodia, and Pakistan have moved within narrower export bands, relying on niche strengths or geographic advantages. The updated tariff alignment—India at 18%, Bangladesh at 19% with fibre-linked duty-free access, and others between 19% and 34%+—creates new competitive equations. Bangladesh’s fibre-based waiver could strengthen its position in US-linked supply chains, particularly for cotton and synthetic apparel. At the same time, India’s lower baseline duty still offers a broad-based cost advantage across categories.

As brands optimise sourcing against duty structures, compliance requirements, and supply chain resilience, order flows are likely to shift toward suppliers that combine tariff competitiveness with scale, reliability, and diversified product capabilities. 

Over the last five years, China has seen the sharpest contraction after peaking in 2022, while Vietnam and Bangladesh experienced growth followed by stabilization. Mexico, Cambodia, and Pakistan have moved within narrower export bands, relying on niche strengths or geographic advantages. The updated tariff alignment—India at 18%, Bangladesh at 19% with fibre-linked duty-free access, and others between 19% and 34%+—creates new competitive equations. Bangladesh’s fibre-based waiver could strengthen its position in US-linked supply chains, particularly for cotton and synthetic apparel. At the same time, India’s lower baseline duty still offers a broad-based cost advantage across categories.