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Business
US Tariff Cut on Indian Textiles Leaves Exporters at Disadvantage as Rivals Gain Quota Exemptions
✍️ BusinessLine
🗓 28 Jul 2026, 04:37 AM
👁 3
A BusinessLine report notes that although the U.S. has lowered its tariff on Indian textiles, exporters may still lose ground because competing countries have received quota exemptions.
The United States has recently reduced the tariff applied to Indian textile imports, a move that was expected to boost the country's export competitiveness. However, a BusinessLine analysis points out that this advantage may be offset by the fact that rival textile-producing nations have secured quota exemptions, allowing them to export more freely into the U.S. market.
The tariff cut, while lowering the cost of Indian goods, does not eliminate the structural disadvantage created by the quota system. Exporters in India now face a dual challenge: competing against lower‑priced products from countries with quota relief and coping with the higher relative cost of their own goods.
Industry experts warn that unless India can negotiate similar exemptions or find ways to reduce production costs, the tariff reduction alone may not translate into a significant market share gain. The report calls for a reassessment of trade strategies to maintain competitiveness in the evolving U.S. textile landscape.
The tariff cut, while lowering the cost of Indian goods, does not eliminate the structural disadvantage created by the quota system. Exporters in India now face a dual challenge: competing against lower‑priced products from countries with quota relief and coping with the higher relative cost of their own goods.
Industry experts warn that unless India can negotiate similar exemptions or find ways to reduce production costs, the tariff reduction alone may not translate into a significant market share gain. The report calls for a reassessment of trade strategies to maintain competitiveness in the evolving U.S. textile landscape.