# Textiles and leather: Chokepoints and risks

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

Source page: https://www.materialinsights.org/industries/textiles/risks/

#### Chokepoints and risks

- Polyester is 59% of world fibre and 88% of it fossil-based, so fibre costs track crude oil and PTA cycles^[1](https://textileexchange.org/knowledge-center/reports/materials-market-report-2025/).
- 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 rules^[1](https://textileexchange.org/knowledge-center/reports/materials-market-report-2025/).
- 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 2025^[5](https://www.deccanherald.com/amp/story/business%2F50-us-tariff-on-indian-apparel-exports-could-be-death-knell-for-small-firms-aepc-3670074); a February 2026 deal dropped the 25% penalty and set an 18% rate^[6](https://kpmg.com/us/en/taxnewsflash/news/2026/02/united-states-removes-tariffs-imports-india.html), and after the US Supreme Court struck down those tariffs a temporary 10% duty applied^[3](https://www.newsonair.gov.in/white-house-says-india-to-face-temporary-10-per-cent-tariff-after-new-us-order), 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.

## Other sections

- [Overview](https://www.materialinsights.org/industries/textiles/index.md)
- [Where ₹100 goes](https://www.materialinsights.org/industries/textiles/cost-mix/index.md)
- [Price links with suppliers](https://www.materialinsights.org/industries/textiles/price-links/index.md)
- [Example story](https://www.materialinsights.org/industries/textiles/story/index.md)
- [Linked industries](https://www.materialinsights.org/industries/textiles/linked-industries/index.md)
- [Value chain](https://www.materialinsights.org/industries/textiles/value-chain/index.md)
- [Materials drawn on](https://www.materialinsights.org/industries/textiles/materials/index.md)
- [Sources](https://www.materialinsights.org/industries/textiles/sources/index.md)