India's textile and apparel exporters face renewed tariff risk in the US market, the Confederation of Indian Textile Industry (CITI) has warned, flagging potential American duties as a direct threat to one of the country's largest manufacturing export categories.

The US is the single biggest destination for India's textile and apparel shipments, and any new tariff regime would land on an export base already competing against Bangladesh, Vietnam and China on price. CITI's caution puts sourcing teams at US brands and retailers on notice: cost calculations for Indian cotton goods, home textiles and ready-made garments may need to be revisited if Washington follows through.

What is CITI flagging?

CITI, the apex industry body for India's textile sector, has assessed that potential US tariffs could pressure export volumes and compress margins across the value chain — from spinning mills to garment factories. The warning comes as US trade policy shifts keep tariff announcements in play for major supplier countries.

For Indian suppliers, the exposure cuts two ways:

• Direct cost impact, if additional duties raise landed prices for US buyers and squeeze order books
• Indirect pressure, as competing sourcing destinations that escape or soften tariffs could capture share at India's expense

What does this mean for sourcing decisions?

US importers weighing India against alternative origins will need to model tariff scenarios before committing to long-term programs. Home textiles and cotton apparel — segments where Indian mills hold strong capacity and vertical integration — are the categories most exposed to a price shock on the US shelf.

Indian exporters, for their part, may face pressure to absorb part of any duty to defend market position, a move that would compress already thin garment margins. CITI's warning suggests the industry body expects any tariff move to trigger renegotiation pressure from US buyers rather than a clean pass-through of costs.

The timing matters for order books. Sourcing decisions for upcoming seasonal programs are typically locked months ahead of delivery, so even the threat of tariffs can shift allocations away from India before any duty takes effect.

Is a deal still possible?

CITI's framing — "potential" tariffs — signals that the industry sees the outcome as unresolved. Trade negotiations between Washington and Delhi could yet produce exemptions, quota arrangements or reduced rates for textile and apparel lines, as has happened in previous US trade disputes with supplier countries.

Until clarity arrives, Indian mills and garment exporters must plan for both scenarios. That means holding price quotations with tariff contingencies, diversifying toward non-US markets, and pressing for government support measures such as export incentives.

For US brands, the practical question is simpler: how much of the India book can be hedged across origins, and at what freight and compliance cost. CITI's warning makes clear that Indian suppliers intend to fight for those orders, but the pricing terms of that fight remain unsettled while the tariff question hangs open.