A report by NDTV Profit has said that Walmart, Amazon, Target and Gap- some of the big American retailers, have discontinued their orders with India after an order given by the US President Donald Trump to impose a 50-per cent tariff on Indian products, sources were quoted as saying by the news channel.

US buyers have even sent emails and letters to exporters requesting them to stop shipment of apparel and textile products until further notice. NDTV Profit reported this group of buyers as not being willing to bear the higher burden of cost and instead are laying the pressure on Indian exporters to bear the monetary burden of their own.

Key Highlights

• US retailers halt Indian exports as Trump imposes 50 percent tariff on goods.
• Indian textile industry faces $4-5 billion loss amid US trade tensions.
• Bangladesh, Vietnam may gain as US-bound Indian orders decline sharply.

The new tariff regime will increase price by 30 to 35 per cent and there is a possibility of decreasing US-bound orders by 40 to 50 per cent. It has been estimated in the industry that this may just result to $4-5 billion in losses.

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Other major exporters like Welspun Living, Gokaldas Exports, Indo Count and Trident all have sales in the US market constituting 40 to 70 per cent of their total sales. The industry is also worried about its potential in losing a big chunk of its business to other competitive textile countries such as Bangladesh and Vietnam who are experiencing a relatively low tariff rate of about 20 per cent.

US is still the largest market of Indian textile and apparel export, and constitutes 28 per cent of total outbound shipment amounting to 36.61 billion in the financial year ending March, 2025.

Also Read: India Prepares for Economic Impact Amid 50% US Tariff Hike

This resulted in the punitive tariffication after India kept purchasing oil in Russia. Trump wrote in an executive order he signed Wednesday, “I find that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.”

Starting Thursday, a tariff rate of 25 per cent is imposed on economic goods and another 25 per cent has been scheduled to be imposed on August 28.