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US tariffs threaten India's cotton consumption in 2025–26 season

President Donald Trump imposed a ** per cent reciprocal tariff on Indian goods in early August ****. Two weeks later, he imposed an additional ** per cent penal tariff, alleging that India was funding the Russian war by purchasing crude oil.

These combined tariffs have made Indian goods, including garments and textiles, unviable in the US market. Reports indicate that some orders have been diverted to other exporting countries. Indian exporters have also sacrificed margins to retain long-term customers, as regaining lost customers would be extremely difficult.