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US Section 301 and Textiles: India vs China Landed Cost in 2026

November 10, 2026
3 MIN READ
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US Section 301 and Textiles: India vs China Landed Cost in 2026
In this article
  1. The India sum
  2. How the origins compare in the US
  3. Why China is harder than its duty rate suggests
  4. What is still uncertain
  5. What US buyers can do
  6. Transit and terms
  7. Go deeper

Short answer: a US importer of Indian terry towels should budget about 19.6 percent duty: roughly 9.6 percent MFN plus a 10 percent Section 301 duty that took effect on 24 July 2026. China carries a heavier duty stack and a cotton traceability problem at the border. India is no longer duty-light in the US, but it is still the simpler origin.

The India sum

US duty on a $2.50 Indian towel
FOB priceMFN, about 9.6%Section 301, 10%
Per towel$2.99 before freight
Per towel
550 GSM bath towel, FOB Cochin$2.50
MFN duty, about 9.6 percent$0.24
Section 301 duty, 10 percent$0.25
Total duty$0.49

US duty is assessed on the FOB value. The MFN rate on towels runs from about 9.6 to 11.4 percent depending on the exact tariff line, and bed linen from about 3.4 to 8.4 percent, so classification matters.

How the origins compare in the US

Section 301 duty added on top of MFN
India10%
Pakistan10%
Bangladesh10%
Türkiye12.5%
OriginOn top of MFNOther points
India10 percent Section 301Cotton grown at home
Pakistan10 percent Section 301Same as India
Bangladesh10 percent Section 301Imports most of its cotton
Türkiye12.5 percent Section 301Short runs, higher prices
ChinaOlder Section 301 duties plus later measuresXinjiang cotton presumed barred under US forced-labour law

Why China is harder than its duty rate suggests

US Customs presumes that goods containing cotton from Xinjiang are made with forced labour and bars them. A large share of China's cotton comes from Xinjiang. An importer of Chinese cotton towels needs fibre traceability documents ready for a detention, and a detained container costs more than any duty difference.

Indian towels made from Indian cotton avoid that question, though you should still keep origin records for the yarn.

What is still uncertain

  • A second Section 301 case, on excess capacity, names India and Bangladesh and is still open. Rates could change.
  • Tariff measures have changed several times in two years. Check the current position with your customs broker before you fix a selling price.

We publish these as planning figures, checked in October 2026, and not as customs advice.

What US buyers can do

  • Classify precisely. A point or two of MFN rides on the tariff line.
  • Buy FOB and control the freight. Duty is on FOB value, so freight is not dutiable, but it is still your largest added cost.
  • Ask about duty drawback if you re-export. See our US duty drawback guide.
  • Compare landed, not FOB. A cheaper FOB price from an origin with a traceability risk is not cheaper.

Transit and terms

From Cochin, sea transit is 18 to 22 days to the US West Coast and 25 to 30 days to the East Coast. Production takes 30 to 45 days.

Go deeper

See India vs China towels for US buyers and our US towel import duty page. The duty calculator works a landed cost for your quantity. For an FOB quote, send us your spec.

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Dr Abin Babu

Written by

Dr Abin Babu

Founder & Chairman, Anabyn Global Ventures

Anabyn exports hotel and home linen from Kerala, India. These guides come from the questions buyers ask our desk. About the team

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