Textile exports slump; tariff refunds start

U.S. demand for imported clothing and textiles weakened in February just as Washington set an April 20 start for tariff refunds. (trade.gov) (cbp.gov) U.S. imports from India fell 28.7% year over year in February, while imports from China dropped 45.2% and Bangladesh fell 16.4%. Vietnam moved the other way, with a roughly 5% increase, according to Office of Textiles and Apparel data cited by the Confederation of Indian Textile Industries. (economictimes.indiatimes.com) (trade.gov) Indian exporters said the drop came even after additional U.S. tariffs were rolled back in February 2026. Rajat Jaipuria of Rajalaxmi Cotton Mills said his company has recovered only about 40% of its U.S. buyers after customers shifted sourcing elsewhere. (economictimes.indiatimes.com) The refund side of the story starts with duties collected under the International Emergency Economic Powers Act, a law the U.S. government used for emergency trade measures. U.S. Customs and Border Protection said it will begin Phase 1 refunds on April 20, 2026 through a new Automated Commercial Environment tool called Consolidated Administration and Processing of Entries. (cbp.gov) Phase 1 is narrow. Customs said it covers certain unliquidated entries and certain entries within 80 days of liquidation, while court filings described the first round as focused on unliquidated entries and those still inside the voluntary reliquidation window. (cbp.gov) (taxnews.ey.com) Customs said importers and brokers must file refund claims through the Automated Commercial Environment portal with a comma-separated values file, and each declaration can include up to 9,999 entries. The agency said refunds will be consolidated by importer of record or an authorized refund recipient. (cbp.gov) Court filings show why importers are watching the rollout date closely. U.S. Customs told the Court of International Trade that Phase 1 could cover about 63% of affected entries, and that electronic refund enrollment was already mandatory for these claims. (taxnews.ey.com) (thompsonhinesmartrade.com) The tariff backdrop has shifted repeatedly since early 2025. United Nations Trade and Development said U.S. tariffs imposed under the International Emergency Economic Powers Act were still in force on February 27, 2026, and often stacked on top of older tariff rules and sector measures. (unctad.org) That leaves apparel suppliers and U.S. importers on two different clocks. February trade data still reflect orders and shipments booked during the tariff disruption, while the first refund window opens on April 20 with later phases left for more complex and fully liquidated entries. (economictimes.indiatimes.com) (cbp.gov)