US increases additional tariff on China; opportunity for India

 

The recently hiked additional tariff to 25 per cent by US on China can be a good opportunity for Indian textile industry as additional tariff hike covers textile chapters 50 and 60. Though the additional tariff hike does not include garments and made-ups segments which means that there will be no additional advantage for the exports of the same.

However, these chapters cover more than 10 product categories like cotton, silk, wool, knitted fabrics, special woven fabrics, coated and industrial fabrics, floor covering, other vegetable fibres, manmade filaments, etc. (see table for details).

The value of the given below textile products was approximately US $ 3.96 billion in 2018, which is only 2 per cent of USís notified US $ 200 billion imports from China. Whereas, USís total import of these textile products from India is approximately US $ 1.71 billion in 2018, which is 43 per cent of USís imports from China. Out of the total textile products, cotton textiles account for the largest number of tariff lines (520 at 10 digit level).  In terms of value, the most imported products belong to floor coverings, non-woven cordage and manmade filaments.

Sanjay K. Jain, Chairman, CITI (Confederation of Indian Textile Industry) is of the view, ďThe additional tariff hike provides an opportunity for the Indian textile industry to increase its exports to US, particularly for the products belonging to the categories; cotton textiles, floor coverings and manmade filaments.Ē

Summary of USís Imports of Textile Products from China on which Additional Tariff is Increased from 10% to 25%
Chapter Description No. of Tariff Lines

 

at 10-Digit

USís Imports from China (US $ million) USís Imports from India (US $ million)
      2018 2018
50 Silk 34 23.17 11.15
51 Wool 109 24.69 3.36
52 Cotton 520 207.69 97.30
53 Other Vegetable Fibres 61 35.34 57.62
54 Manmade Filaments 269 614.26 193.58
55 Manmade Staple Fibres 388 392.68 113.69
56 Non-wovens Cordage 77 709.69 95.02
57 Floor Coverings 74 737.85 906.47
58 Special Woven Fabrics 107 216.94 37.28
59 Coated and Industrial Fabrics 75 610.58 115.62
60 Knitted Fabrics 97 386.09 75.97
  Total 1811 3959 1707

Source: Office of Textile and Apparel, US

 

 

 

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