How U.S. Tariffs Are Hitting Apparel & Textiles
Garment Manufacturing
Recent U.S. tariff hikes are reshaping the global apparel and textile trade, and two of the hardest-hit exporters are India and Bangladesh.
India: Losing Its Competitive Edge:
India has long relied on the U.S. as a major market for garments and textiles. But higher duties now make Indian apparel significantly more expensive. Exporters report shrinking margins, slower orders, and growing uncertainty among U.S. buyers. Smaller manufacturers ( many already operating on thin margins) face the greatest risk, with some warning of possible shutdowns. The industry fears job losses, weaker foreign-exchange earnings, and an overall slowdown in textile hubs like Tiruppur.
Bangladesh: A Severe Cost Shock:
Bangladesh, one of the world’s largest garment exporters, faces even steeper U.S. duties. The new tariff structure pushes total charges above 35%, raising the price of a basic shirt by several dollars and undermining the country’s cost advantage. This threatens factory operations, export volumes, and millions of workers who depend on the garment sector. The broader economy is heavily reliant on apparel exports and could feel significant strain.
Shifting Global Dynamics:
U.S. tariffs have made apparel and textiles from India and Bangladesh less competitive, raised costs for American buyers, and injected new uncertainty into a once-stable trade flow. The coming year will determine whether both industries can adjust, or whether the tariffs will trigger lasting declines in exports and employment.
The tariff hikes are prompting U.S. retailers to reconsider where they source garments. Countries with lower duties or favorable trade agreements may gain ground, while India and Bangladesh risk losing market share. Both nations are now exploring ways to adapt: diversifying export markets, restructuring supply chains, and moving toward higher-value products.
Take a look at the following video to see how retailers and importers use TariffBuster to help determine where to source garments and increase profitability:
