US Tariff Threat Puts Garment Exports
New US tariff powers over Russian oil buyers could raise costs for India’s price-sensitive textile and apparel exporters.
India’s textile and apparel industry is facing fresh uncertainty after a new US law gave the administration powers to impose tariffs of up to 100% on countries buying Russian oil and gas.
The development is significant for Indian garment exporters because the United States is the country’s largest single market for textile and apparel products. The Confederation of Indian Textile Industry (CITI) has urged the Indian government to engage with Washington to protect exporters from potential additional duties.
The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, signed by US President Donald Trump, allows the administration to impose tariffs on imports from countries that continue purchasing Russian energy. However, the final tariff rate, products covered and implementation schedule have not yet been announced.
CITI Chairman Ashwin Chandran said additional tariffs would be difficult for India’s largely MSME-driven textile sector to absorb. Higher duties could make Indian garments more expensive for US buyers and affect exporters’ competitiveness and margins.
India’s recent export data already shows mixed performance. Textile exports increased 13.03% year-on-year in August 2026, while apparel exports declined 2.74%. Between April and August, textile exports grew 6.94%, but apparel exports fell 9.10%, leaving combined textile and apparel exports down 0.24% year-on-year.
The potential tariff impact will depend on how Washington implements the new law. Industry groups are seeking a predictable India-US trade framework and greater engagement to limit disruption to shipments and maintain access to the US market.