Textiles and leather: Chokepoints and risks

Spinning, weaving and processing fibres into yarn and fabric, and hides into leather

Polyester is 59% of world fibre and 88% of it fossil-based, so fibre costs track crude oil and PTA cycles¹.
Recycled fibre is only 7.6% of output, and less than 1% comes from recycled textiles, leaving the chain exposed to EU and brand circularity rules¹.
Water and effluent permits limit dyeing and tanning capacity in Indian clusters, and closure orders can halt whole hubs.
US duties on Indian goods reached 50% in August 2025⁵; a February 2026 deal dropped the 25% penalty and set an 18% rate⁶, and after the US Supreme Court struck down those tariffs a temporary 10% duty applied³, so access to the largest market stays uncertain.
Cotton output swings with monsoon and pests, and India's cotton is less traceable than brands now demand.