This Week’s Takeaway
India may extend its 11% cotton import duty exemption through December as domestic supplies tighten. That could help Indian mills control material costs, but cheaper cotton won’t necessarily mean cheaper garments.
The measure also adds a new factor to sourcing comparisons. Last week’s U.S. cotton initiative could eventually reduce certain U.S. duties on qualifying apparel from Bangladesh, Cambodia, Indonesia and Malaysia. India’s exemption works differently: it lowers cotton input costs, not U.S. duties on finished garments. The real advantage will depend on how these measures affect supplier prices.
Meanwhile, the U.S. has proposed extending its pause on China-linked vessel fees through January 9, 2027, potentially delaying additional freight charges. CBP has also extended certain international postal-entry requirements to January 20, 2027, giving affected apparel importers more time to prepare without restoring duty-free treatment.