South Asia's Textile Battle Under U.S. Tariff Pressures

In August 2025, the U.S. imposed tariffs of 19% on Pakistani textiles, 20% on Bangladeshi goods, and 25% (possibly rising to 50%) on Indian textiles and apparel, reshaping South Asia’s export dynamics.

Pakistan’s earlier 5-point lead over Bangladesh has narrowed to just 1%, making its position fragile.

India’s $10 billion annual textile exports to the U.S. are under threat, with four straight months of decline by July 2025.

Bangladesh holds a cost edge with 4.1 million textile workers—nearly 3x Pakistan’s workforce—and 60% lower power and gas tariffs.

To offset losses, India may reroute strategy by exporting yarns and fabrics to tariff-favored neighbors like Bangladesh and Pakistan.