“In Wake of 50% Tariffs Imposed by US, India Does Away With 11% Duty on Cotton Imports” 19 August 2025

In wake of the 50% tariffs on India imposed by the US, the Union Finance Ministry on Monday (August 18) notified the elimination of 11% duty on cotton imports with immediate effect.

The move came amid widespread fears of job losses in the textile sector due to US tariffs that would leave Indian products uncompetitive in the US market, India’s largest export market, reported Indian Express.

The government stated that the ending of import duty on cotton as well as Agriculture Infrastructure and Development Cess (AIDC) “is necessary in the public interest”. It added that the notification will come “into force with effect from August 19, and shall remain in force up to and inclusive of September 30”.

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The US accounts for 60% of exports for home textiles and 50% of exports for carpets.

CITI has pointed out that the while the US tariff rate for India has been set at 50%, the US tariffs for competing countries such as Bangladesh is 20%, Indonesia and Cambodia are 19% each and Vietnam is 20%, reported Indian Express.