India’s $190-billion textile and apparel industry is divided over the 10% Section 301 tariff imposed by the US on Indian goods over “forced labour” concerns. While some exporters fear the move could divert sourcing orders and create fresh uncertainty, others believe it will strengthen India’s competitive position against several rival manufacturing nations.
The latest US action follows investigations conducted by the Office of the US Trade Representative (USTR) into the enforcement of prohibitions on imports made using forced labour. While Washington lowered the proposed tariff on Indian goods to 10% from 12.5%, it also announced tariff-rate quota (TRQ) benefits for Bangladesh, Cambodia, Indonesia, and Malaysia, allowing specified textile and apparel exports from those countries to enter the US without the additional Section 301 duty. The TRQ benefit is not available to India.
