Major US retailers halt orders from India

Major US retailers including Walmart, Amazon, Target and Gap have suspended imports of apparel and textile products from India after President Donald Trump imposed a 50 per cent tariff on Indian goods.

NDTV Profit, citing industry sources, reported that Indian exporters have received letters and emails from American buyers instructing them to hold shipments of apparel and textile products until further notice.

The retailers, unwilling to absorb the additional duty, are seeking to pass the extra cost onto exporters, it added.

With costs rising by an estimated 30 per cent to 35 per cent due to the tariff hike, exporters warn that US-bound orders could fall by 40 per cent to 50 per cent.

The impact may cause losses ranging from $4 billion to $5 billion.

Major Indian exporters such as Welspun Living, Gokaldas Exports, Indo Count and Trident rely heavily on the US market, with 40 per cent to 70 per cent of their sales tied directly to American retailers.

The US is also the biggest export destination for India’s textile and garment industry.

In the financial year ending March 2025, 28 per cent of India’s total $36.61 of textile and garment exports went to the US.

As the world’s sixth-largest textile and garment exporter, India now fears losing orders to Bangladesh and Vietnam, which face a 20 per cent tariff instead.