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Advantage, textiles and leather
April 04, 2025
|Mint Kolkata
The universal and reciprocal tariffs that US President Donald Trump announced on April 2 has put Indian textile and leather sectors at a relative advantage over their peers.
The universal and reciprocal tariffs that US President Donald Trump announced on April 2 has put Indian textile and leather sectors at a relative advantage over their peers. This is because the US has levied higher tariffs on India's main competitors.
Vietnam will suffer a 46% tariff on all exports, while it is 44% on Sri Lanka and 37% on Bangladesh. China, the biggest exporter of textiles and leather to the US, will have to pay 54% more (34% reciprocal tariff and 20% tariffs levied earlier after Trump returned to office). In comparison, Indian exports will face a tariff of 27% (in addition to the existing levy). That improves India's competitiveness in the US market.
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