US tariff bill puts Indian textile and apparel exporters at risk of tariffs up to 100%
A new US Russia-sanctions law could target major buyers of Russian energy, threatening India’s MSME-led textile and apparel exporters in their largest export market. The USTR may identify targets within 30 days, potentially accelerating action ahead of the usual 180-day window.
What happened
Indian textile and apparel sector · India’s textile and apparel exporters face potential US tariffs of up to 100% under a new Russia sanctions law targeting
Key facts
- Up to 100% US tariffs
- 30 days for USTR target identification
- Normally 180 days to reduce Russian energy purchases or negotiate
- India is the second-largest buyer of Russian energy after China
- 25% additional US tariff imposed on Indian goods in July 2025 and withdrawn in February 2026
What changed
India’s textile and apparel exporters face potential US tariffs of up to 100% under a new Russia sanctions law targeting major buyers of Russian energy, threatening MSME-led sector competitiveness in its largest export market.
Why this matters
US tariff exposure of up to 100% could force Indian apparel exporters and their retail customers to reprice, diversify sourcing, and accelerate contingency planning for the US market.
What to watch
- USTR notice naming covered countries, entities, products, tariff rates, exclusions and effective dates.
- Whether India receives a waiver, energy-purchase exemption, phased compliance arrangement or diplomatic settlement.
- Clarification of tariff stacking with existing US duties, Section 301 measures and product-specific trade remedies.
- Large US apparel retailers announcing sourcing diversification, vendor exits, price actions or margin-risk commentary.
- Indian government measures to reduce Russian energy exposure, subsidize exporters, offer credit support or challenge US action.