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US tariff hike on Chinese textiles: Advantage India

May '19
Pic: DWilliams from Pixabay
Pic: DWilliams from Pixabay
The inclusion of chapters 50-60 in the recently imposed additional tariff on Chinese imports by the US has put India in an advantageous position, according to the Confederation of Indian Textiles Industry (CITI). Indian textile industry has an opportunity to increase its exports to US, particularly cotton textiles, floor coverings, and man-made filaments.
The US has hiked tariff to 25 per cent on $200 billion imports from China with effect from May 10, 2019. This tariff hike covers textile related chapters 50-60 and an analysis reveals that this puts India at an advantageous position. “We must grab this opportunity to increase our share of textile exports to the US,” CITI chairman Sanjay K Jain said in a press release.
The US imports of textile products from China under chapters 50-60 was $3.96 billion in 2018, accounting for only 2 per cent of the notified $200 billion imports from China. In comparison, US imports of these products from India stood at $1.71 billion in 2018.
“Out of the total textile products, cotton textiles account for the largest number of tariff-lines (520 at 10-digit level). In terms of value, the most imported products belong to floor coverings, nonwoven cordage and man-made filaments,” the release said.
Indian apparel and made-ups exporters, however, will not have any additional advantage as the items notified in the tariff hike do not include garments and made-ups. (RKS)

Fibre2Fashion News Desk – India

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