US Tariff Increases Impact Global Textile Trade Strategy

The recent imposition of tariffs by the US on textile imports has significant implications for major exporting countries, particularly India, which faces a dramatic tariff increase from 4.57% to 30.57%. This sharp rise poses challenges for Indian exports, which totaled approximately $2.77 billion in 2024, as it may lead US buyers to seek alternatives with more favorable tariff structures. Conversely, countries like Kenya are positioning themselves as competitive alternatives due to a lower baseline tariff of 10%, significantly lower than those applied to competitors like Vietnam and Bangladesh. However, Kenyan manufacturers are also contending with higher domestic costs and the potential for a global economic downturn exacerbated by these tariffs. Observers note that despite initial optimism regarding India's tariff rates compared to its competitors, higher production costs may negate any advantages. The overall landscape remains uncertain as countries navigate these new trade dynamics while grappling with economic pressures and potential recessions.