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India along with other tier 3 supplier economies have been imposed 10% tariffs by the US

ICICIdirect Research 24 Jul 2026 DISCLAIMER

News: India along with other tier 3 supplier economies have been imposed 10% tariffs by the US Section 301 of the Trade Act, which allows Washington to act against foreign trade practices it considers unfair or discriminatory such as forced labour. 10% tariffs is now levied on India, Canada, Mexico, Bangladesh, Pakistan, Sri Lanka, the UK and other tier 3 suppliers. The European Union, Japan, Korea, Taiwan and Switzerland face 10 or 12.5% net of existing Most-Favoured-Nation rates

View: This levy of 10% tariffs is unlikely to any material impact on textile companies due to 2 reasons 1) This tariff is a replacement to the already levied 10% which expires on July 24th 2026 2) The tariff rate is a blanket rate on India’s textile competitors such as Bangladesh, Pakistan and others hence overall tariffs across competitors remains same. Hence, structurally the situation remains unchanged. We will monitor the announcement of tariffs on China and Vietnam which are also very close competitors of India.

Impact: Neutral

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