New Delhi: Several major US retailers — including Walmart, Amazon, Target, and Gap — have halted orders from India following the United States’ decision to impose a steep 50% tariff on Indian goods. The move has sparked concerns of significant losses for India’s textile and apparel exporters, who are now facing cancelled shipments and rising costs.
Exporters have reportedly received letters and emails from American buyers instructing them to pause apparel and textile deliveries until further notice. The buyers are unwilling to share the cost burden, leaving exporters to absorb the additional expenses. Industry estimates suggest the higher tariffs will raise costs by 30–35%, potentially leading to a 40–50% drop in orders to the US and losses amounting to $4–5 billion.
Prominent Indian companies such as Welspun Living, Gokaldas Exports, Indo Count, and Trident — which derive 40–70% of their sales from the US — are among the most affected. The United States remains India’s largest export destination for textiles and apparel, accounting for 28% of total exports valued at $36.61 billion in the financial year ending March 2025.
Industry experts warn that India now risks losing market share to Bangladesh and Vietnam, which face a lower 20% tariff.
The tariff hike includes an immediate 25% duty that came into force this week, with another 25% set to take effect on August 28. The measure has been justified by Washington as a penalty for India’s continued imports of Russian oil.
India has condemned the decision as “unfair, unjustified and unreasonable,” emphasising that its oil purchases are driven by market conditions and the need to secure energy for 1.4 billion citizens. New Delhi has also pointed out that several other nations, including the US and European Union members, continue to trade extensively with Russia.
Officials noted that the US itself imports uranium hexafluoride for its nuclear industry, palladium for its EV sector, fertilisers, and chemicals from Russia. Similarly, the EU recorded €67.5 billion in goods trade with Moscow in 2024, alongside €17.2 billion in services, and set a record for LNG imports from Russia at 16.5 million tonnes.
India maintains that it began sourcing Russian oil in 2022 after traditional supplies were redirected to Europe following the Ukraine conflict — a decision that Washington had initially encouraged to stabilise global energy markets.
In a strongly worded statement, the government reaffirmed that it would take “all necessary measures” to protect national interests and economic security in the face of the new US trade restrictions.
