The US Textile Market: Consumer Trends, Trade Barriers, and Growth Potential for India

Introduction The United States remains a pivotal market for global textile trade, characterised by shifting consumer preferences—luxury, fast fashion, athleisure and sustainable apparel—and heightened regulatory and geopolitical complexity. For Indian exporters and textile businesses, the current tariff uncertainty and demand dynamics present both challenges and opportunities.

- Vivek Mehta

Consumer Trends: Luxury, Fast Fashion & Sustainability

• Luxury & Premium Heritage: American consumers continue to favour premium, artisanal, and heritage products-silk, handloom scarves, embroidered apparel-that Indian manufacturers can supply.

• Fast Fashion & Athleisure Surge: Gen Z and Millennials drive demand for trendy, quick-cycle fashion and activewear.

The U.S. athleisure market is booming and projected to exceed $800 billion globally by 2028.

• Sustainability & Re-commerce Acceleration: U.S. lawmakers are promoting the circular economy through tax incentives for secondhand markets. Platforms like Depop and ThredUp are rapidly growing in popularity. This shift boosts demand for organic cotton, biodegradables, and traceable supply chains.

Trade Policies & Tariff Uncertainty

• New U.S. Tariff Regime: In April 2025, the U.S. introduced a universal 10% baseline tariff, plus country-specific "reciprocal tariffs"—India faces a 26–27% ad valorem tariff on top of duties, effective April 9. The 26% tariff is currently suspended until July 9, pending legal review, with the baseline 10% remaining in force.

• Legal & Negotiation Status: A U.S. court temporarily blocked full tariff imposition; negotiations for a reciprocal "zero-for-zero" tariff trade agreement are ongoing.