The first half of 2026 US textile import data has sent a clear warning to global textile traders: India's exports to the US plummeted 23.3% year-on-year, falling from $5.35 billion to $4.10 billion, a loss of $1.25 billion in orders. This decline is more than three times the overall US import drop, indicating that India is not merely following a weaker market but suffering structural order erosion. In the same period, ASEAN exports to the US grew 4.5% against the trend, signaling a visible shift in the weight of Asian textile supply chains.
Background
India's share of the US textile and apparel import market fell from 10.4% to 8.6% year-on-year, losing 1.8 percentage points in just twelve months. While this number may seem modest, it represents a substantial volume of purchases given the US market's multi-billion-dollar import scale. More critically, India's export decline far outpaced the industry average, suggesting that its priority among US buyers is being systematically downgraded.
The growth in ASEAN is no coincidence. From an industrial cluster perspective, Vietnam, Cambodia, and Bangladesh have continuously expanded capacity in recent years, forming comprehensive advantages in labor costs, tariff concessions, and supply chain responsiveness. When US brands seek alternative sourcing destinations, ASEAN naturally becomes the first choice. It is important to note that this substitution is not a simple transfer of orders but the result of buyers reassessing their entire supplier base.
Industry Impact
Tariff uncertainty is the core trigger for this round of order losses. The textile and apparel industry has a lead time of more than six months; orders for spring/summer styles exported in H1 2026 were largely decided between late 2025 and early 2026. During that window, Indian suppliers faced unresolved high tariff risks, prompting US brands and buyers to adjust sourcing allocations downward to avoid cost volatility, redirecting orders to ASEAN countries with more stable policy environments.
This order shift exhibits significant supply chain inertia. Once buyers finalize supplier contracts, lock in production schedules, and confirm logistics plans, the entire supply chain arrangement becomes fixed. Even if tariff pressures ease later, already allocated orders are unlikely to return to India quickly, meaning India loses not only the immediate $1.25 billion but potentially sustained share erosion over the coming quarters.
For global textile traders, this case offers an important lesson: the risk of over-reliance on a single market or sourcing destination is far greater than commonly assumed. In US buyers' decision-making, policy stability and supply chain predictability are gaining weight, even surpassing pure manufacturing costs. For suppliers still competing primarily on price, this is a signal that deserves serious attention.