CITI warns US Russia-oil sanctions could raise tariff risk for Indian garment exporters
India’s textile industry body has urged government engagement with Washington, warning that US tariffs of up to 100% on buyers of Russian oil could hurt MSME-led apparel exporters serving the critical US market.
What happened
Confederation of Indian Textile Industry (CITI) · CITI urged government engagement with Washington after a US law enabled tariffs up to 100% on Russian oil
Key facts
- US tariffs of up to 100%
- Textile and apparel exports rose 6.39% year-on-year in August 2026
- Textile exports increased 13.03% in August 2026
- Apparel exports fell 2.74% in August 2026
- Textile exports grew 6.94% between April and August 2026
What changed
CITI urged government engagement with Washington after a US law enabled tariffs up to 100% on Russian oil buyers. The industry warns duties could damage India’s MSME-led textile and apparel exporters, particularly in the crucial US market.
Why this matters
Prepare contingency sourcing and pricing plans for US-bound apparel orders as Russia-oil-related tariffs could further strain Indian suppliers already facing a 9.1% export decline.
What to watch
- Formal US Treasury, Commerce, USTR or White House action linking Russian-oil purchases to tariffs on Indian imports.
- Whether proposed duties apply broadly to all Indian goods, to selected sectors, or only to entities proven to transact in Russian oil.
- Indian government commitments to reduce Russian oil imports, seek waivers, or announce retaliatory trade measures.
- US apparel import booking data showing order migration from India toward Bangladesh, Vietnam, Cambodia, Indonesia, Mexico or CAFTA-DR.
- Indian apparel export data, especially continued declines beyond the reported 9.10% April-August 2026 drop.