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US Section 301 probe puts Indian textile exports under fresh pressure

03 Jun '26
3 min read
US Section 301 probe puts Indian textile exports under fresh pressure
Pic: Generated by ChatGPT

Insights

  • USTR's proposed *.* per cent Section 301 tariff has raised uncertainty for India's textile and apparel exports to the US, especially in apparel, home textiles and MMF products.
  • The move also points towards tighter scrutiny on traceability, sourcing and ESG compliance.
  • However, India could still strengthen its sourcing position if ongoing India-US trade talks secure favourable tariff treatment.

A key detail for the textile sector is that USTR has also proposed a special textile mechanism that would allow a certain volume of apparel and textile imports from some countries to enter the US at a reduced Section *** tariff rate, although the details have not yet been published.

*. Immediate risk: Higher costs for US buyers

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