Major US retailers including Walmart, Amazon, Target, and Gapv have suspended apparel and textile orders from India after US President Donald Trump imposed a steep 50% tariff on Indian goods. Exporters say they have received letters and emails from US buyers asking them to halt shipments until further notice, as the buyers refuse to share the cost burden, pushing Indian suppliers to absorb the tariff hit.

The move is expected to raise costs by 30–35% and may slash US-bound orders by 40–50%, translating to an estimated $4–5 billion loss. Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident, which derive 40–70% of their sales from the US, are among those most affected. The United States remains India’s largest textile and apparel export market, accounting for 28% of the industry’s $36.61 billion exports in FY 2024–25.

India now fears losing orders to competitors such as Bangladesh and Vietnam, which face a lower 20% tariff. The new tariff includes a 25% duty already in force and another 25% set to take effect on August 28, imposed as a penalty for India’s continued purchase of Russian oil.

In an executive order, Trump said the additional duty was “necessary and appropriate” given India’s oil imports from Russia. In response, India called the move “unfair, unjustified, and unreasonable,” stressing that such imports are driven by market realities and the need to ensure energy security for 1.4 billion citizens.

The Ministry of External Affairs pointed out that other countries including the US and EU continue substantial trade with Russia, importing energy and critical commodities. It noted that Washington once encouraged India’s Russian oil imports to stabilise global markets. India has vowed to take “all necessary measures” to safeguard its national interests and economic security.

Major US retailers including Walmart, Amazon, Target, and Gapv have suspended apparel and textile orders from India after US President Donald Trump imposed a steep 50% tariff on Indian goods. Exporters say they have received letters and emails from US buyers asking them to halt shipments until further notice, as the buyers refuse to share the cost burden, pushing Indian suppliers to absorb the tariff hit.

The move is expected to raise costs by 30–35% and may slash US-bound orders by 40–50%, translating to an estimated $4–5 billion loss. Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident, which derive 40–70% of their sales from the US, are among those most affected. The United States remains India’s largest textile and apparel export market, accounting for 28% of the industry’s $36.61 billion exports in FY 2024–25.

India now fears losing orders to competitors such as Bangladesh and Vietnam, which face a lower 20% tariff. The new tariff includes a 25% duty already in force and another 25% set to take effect on August 28, imposed as a penalty for India’s continued purchase of Russian oil.

In an executive order, Trump said the additional duty was “necessary and appropriate” given India’s oil imports from Russia. In response, India called the move “unfair, unjustified, and unreasonable,” stressing that such imports are driven by market realities and the need to ensure energy security for 1.4 billion citizens.

The Ministry of External Affairs pointed out that other countries including the US and EU continue substantial trade with Russia, importing energy and critical commodities. It noted that Washington once encouraged India’s Russian oil imports to stabilise global markets. India has vowed to take “all necessary measures” to safeguard its national interests and economic security.