Several major US retailers, including Amazon, Walmart, Target, and Gap, have suspended orders from India following US President Donald Trump’s decision to impose steep tariffs on Indian goods. According to a report by NDTV Profit, exporters have received letters and emails from American buyers instructing them to pause apparel and textile shipments until further notice.
The move comes after Trump signed an executive order imposing a 50 per cent tariff on imports from India, a 25 per cent hike implemented on Thursday, with another 25 per cent scheduled to take effect on August 28. The action is a penalty for India’s continued purchase of Russian oil, which Washington says undermines its sanctions on Moscow.
Buyers Unwilling To Absorb Extra Costs
According to NDTV Profit’s report, US buyers are refusing to share the cost burden of the new tariffs and are pressuring Indian exporters to absorb the increased expenses themselves. The higher duties could raise overall costs for US retailers by 30–35 per cent, making Indian products far less competitive in the American market.
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“We are stunned. Many of us depend on the US market for the majority of our revenue,” said a senior executive at one of India’s leading textile exporters.
Severe Impact On Indian Textile Industry
Industry experts warn that this disruption could lead to a 40–50 per cent drop in US orders for Indian apparel and textiles, translating into potential losses of USD 4–5 billion (Rs 35,047 crore to Rs 43,805 crore). The fallout is expected to hit major exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident, which derive between 40 per cent and 70 per cent of their sales from the American market. A prolonged halt in shipments could also force smaller suppliers, which rely heavily on US contracts, to scale back operations or lay off workers.
New Delhi has strongly criticised Washington’s decision, calling the tariffs “unfair, unjustified, and unreasonable.” The Ministry of External Affairs (MEA) emphasised that India’s energy imports, including oil from Russia, are guided by market considerations and the need to ensure the energy security of 1.4 billion people.