Major U.S. retailers such as Walmart, Amazon, Target, and Gap have suspended orders from India following President Donald Trump’s decision to impose a 50% tariff on Indian goods, NDTV Profit reported on Friday. Exporters say they’ve received communications from American buyers asking them to pause apparel and textile shipments indefinitely.
These buyers are reportedly unwilling to share the added costs, pressuring Indian exporters to absorb the impact. The steep tariff is expected to raise costs by 30–35% and may result in a 40–50% drop in U.S. orders, potentially leading to losses of $4–5 billion. Companies like Welspun Living, Gokaldas Exports, Indo Count, and Trident, which depend heavily on the U.S. market for 40–70% of their sales, are likely to be hit hard.
India fears losing business to Bangladesh and Vietnam, who face a lower 20% tariff. The first 25% of Trump’s tariff took effect on August 7, with the second 25% set for August 28, imposed as a penalty for India’s Russian oil imports.
India criticized the move as “unfair and unjustified,” defending its energy choices as necessary for the nation’s 1.4 billion people. It also pointed out that Western nations, including the U.S. and EU, continue their own trade with Russia.
