Indian garment exporters are racing against time to expedite shipments to the United States. This sudden flurry of activity comes after the US House of Representatives passed a bill authorizing President Donald Trump to impose tariffs as high as 100 percent on energy trading partners of Moscow—a move that could potentially include New Delhi.
Although trade flows show a major shift as the United States rapidly reduces its reliance on apparel imports from China, the production system underpinning the fast-fashion industry is proving much harder to relocate. According to data from the sourcing intelligence tool TexPro, US core-garment imports from China plummeted by 41.4 percent year-on-year to $2.73 billion between January and May 2026, wiping out nearly $1.9 billion in trade within five months.
Bangladesh is approaching its scheduled United Nations graduation from Least Developed Country (LDC) status, with the UN Committee for Development Policy having recommended a three-year extension to 2029. While a final decision by the UN General Assembly is pending following the ECOSOC consensus decision on July 21, 2026, global sourcing decisions are already pricing in the impending trade implications. Because major global brands sign long-term contracts, the looming tariff shift is already actively shaping procurement orders being negotiated today.
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