India vs China Towels:
US Tariffs and Landed Cost in 2026
The US tariff picture changed in July 2026: Indian towels now pay a Section 301 duty too. Here is what that means for your landed cost, where the break-even sits, and why cotton origin matters as much as the rate.
Section 301 in 2026: Both Origins Now Pay
Section 301 of the Trade Act of 1974 lets the US impose tariffs in response to unfair trade practices. In 2018-2019 it was used against China only, adding 7.5-25% across hundreds of HTS lines depending on the list. Those duties are still in place.
On 24 July 2026 USTR applied a new Section 301 action on forced labour to about 60 trading partners: 10% on India, Pakistan and Bangladesh, and 12.5% on several others. So India no longer enters the US free of Section 301 duty. A separate Section 301 case on excess capacity, which names India and Bangladesh, is still open.
India: MFN (about 9.1-11.4%) + 10% Section 301.
China: MFN + the 2018-2019 Section 301 duty for your HTS line + any measures added since. Check the current total for your exact line on the USITC HTS.
Worked Example
Landed Cost: India vs China
500 GSM bath towel (70×140 cm), 5,000 pieces, landed at Los Angeles. Illustrative prices; duty rates as of October 2026.
| Cost Element | India 🇮🇳 | China 🇨🇳 |
|---|---|---|
| FOB price (500 GSM bath towel, 5,000 pcs) | $2.20/pc | $1.90/pc |
| Ocean freight to Los Angeles (20ft FCL) | $1,800 (~$0.36/pc) | $1,500 (~$0.30/pc) |
| Customs value (CIF) | ~$2.56/pc | ~$2.20/pc |
| US MFN duty (9.1%) | ~$0.23/pc | ~$0.20/pc |
| Extra US duties | 10% Section 301 (~$0.26/pc) | Legacy Section 301 plus later measures; depends on your HTS line |
| Landed cost per piece | ~$3.05/pc | ~$3.05/pc only if China pays about 30% extra |
* Illustrative. Freight, FOB and China's extra duty vary by line and season. Put your own quotes into the China vs India sourcing calculator for a real answer.
Section 301 on Indian towels
10%
Since 24 July 2026, on top of MFN. The same rate as Pakistan and Bangladesh.
Break-even extra duty on China
~30%
On our example, China needs about 30% in extra duties before India lands cheaper.
Xinjiang cotton risk
None
Indian towels are made from Indian-grown cotton, so UFLPA detention risk is low.
Beyond Tariffs: Full Comparison
| Criteria | India 🇮🇳 | China 🇨🇳 |
|---|---|---|
| Cotton origin | ✓ Indian-grown | ⚠ Xinjiang common |
| UFLPA fibre-traceability burden | ✓ Low | ✗ High for cotton |
| OEKO-TEX Standard 100 | ✓ Widely available | ✓ Widely available |
| FTC fibre and origin labels | ✓ Full | ✓ Full |
| Section 301 duty (2026) | ⚠ 10% since 24 Jul 2026 | ✗ Legacy plus later measures |
| Open US trade cases | ⚠ Excess-capacity Section 301 case open | ⚠ Several |
Why Anabyn for US Hotel Buyers
Indian cotton, Indian origin
Anabyn towels are made in India from Indian-grown cotton by specialist units we place and inspect orders with, and ship with a certificate of origin. No China-origin fibre or processing.
GSM range matches US hotel tiers
380 GSM (budget select-service) through 700 GSM (ultra-luxury resort) - the full range US hotel procurement teams actually buy, not just one grade.
FTC-compliant care labels included
All export shipments include FTC Textile Fiber Products Act compliant labels: fibre content, country of origin ("Made in India"), care instructions, and your RN or CA number on request.
AQL 2.5 - same standard as your current China supplier
We inspect at AQL 2.5 as standard, the same level major US hospitality procurement specifications require. Third-party SGS/Bureau Veritas inspection available on request.
Organic cotton on request
Organic cotton towels are made by GOTS-certified partner units in India. Ask for the certificate of the unit that makes your order.
24-hour quote turnaround
Submit your spec (GSM, size, quantity, destination port) and receive a formal FOB quotation within 24 hours - the same response window as your current supplier.
Frequently Asked Questions
Do Indian towels face Section 301 tariffs in the USA?
Yes, since 24 July 2026. USTR's Section 301 forced-labour action adds 10% on goods from India, Pakistan and Bangladesh, and 12.5% on several other origins, on top of the MFN rate. Before that date the Section 301 duties applied to China only. A second Section 301 case on excess capacity, which names India, is still open.
What is the import duty on towels from India to the USA?
The MFN rate for cotton terry towels (roughly 9.1-11.4% depending on the HTS line, for example 6302.60.0020) plus the 10% Section 301 duty, both on the customs value. US tariff rules have changed several times since 2025, so check the current total on the USITC HTS before you price.
What is the tariff on towels from China?
MFN plus the Section 301 duties imposed in 2018-2019 (the rate depends on which list your HTS line is on), plus any measures added since. China carries the heaviest stack of the major towel origins. Look up your exact line on the USITC HTS or ask your customs broker.
Are Indian towels cheaper than Chinese towels for US buyers?
Not automatically any more. On our illustrative 500 GSM example, China's FOB price is about 14% lower, so India only lands cheaper when China's extra duties exceed about 30% of customs value. Run your own quotes through our China vs India calculator. The stronger US reason to add India today is cotton traceability under the UFLPA and not depending on one origin.
What does the UFLPA mean for cotton towels?
Under the Uyghur Forced Labor Prevention Act, US Customs presumes goods made wholly or partly in Xinjiang are made with forced labour and can detain them unless the importer proves otherwise. Much of China's cotton is grown in Xinjiang, so Chinese cotton towels need fibre-level traceability. Towels made in India from Indian cotton avoid that question, though you should still keep yarn and origin records.
What are the lead times from India vs China for towels?
Production is similar: 30-45 days for repeat orders from either. Sea freight is shorter from China to the West Coast. From Cochin it is about 18-22 days to the West Coast and 25-30 days to the East Coast.
Get Your India vs China Cost Comparison
Tell us your current spec and volume. We send a formal FOB quotation so you can put it next to your China landed cost. Comparing more origins? See the five-country towel comparison.