- Major US retailers have halted orders from India after Donald Trump imposed a 50% tariff on Indian goods
- Exporters have received letters from US buyers requesting that they pause apparel and textile shipments
- Tariffs are expected to increase costs by 30% to 35% and cause a 40%-50% drop in US-bound orders
Major US retailers, including Walmart, Amazon, Target, and Gap, have halted orders from India after US President Donald Trump imposed a 50 per cent tariff on Indian goods, sources told NDTV Profit on Friday.
Exporters have received letters and emails from US buyers requesting that they pause apparel and textile shipments until further notice.
The buyers are unwilling to share the cost burden and want exporters to absorb costs, sources said.
Higher tariffs are expected to increase costs by 30 per cent to 35 per cent. It could also lead to a 40 per cent to 50 per cent drop in US-bound orders, causing about $4-5 billion loss.
Major exporters like Welspun Living, Gokaldas Exports, Indo Count and Trident make about 40 per cent to 70 per cent of sales in the US.
The United States is the largest export destination for India's textile and apparel industry. The country accounted for 28 per cent of total textiles and apparel exports valued at $36.61 billion in the fiscal year that ended March 2025.
India, the sixth largest exporter of textiles and apparel in the world, now fears losing orders to Bangladesh and Vietnam, which face a 20 per cent tariff.
Trump's Tariffs On India
Donald Trump has imposed a 50 per cent tariff on India, including 25 per cent that kicked in on Thursday and another 25 per cent due to come into effect on August 28 as a penalty for buying Russian oil.
"I determine 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," he wrote in an executive order signed on Wednesday.
India said the US tariffs were "unfair, unjustified and unreasonable".
"The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," the Ministry of External Affairs said in a statement.
It said it was "extremely unfortunate" that the US has chosen to impose additional tariffs on India for actions that "several other countries are also taking in their own national interest".
"India will take all actions necessary to protect its national interests," it added.
Two days before Mr Trump's tariffs announcement, New Delhi said it began importing oil from Russia because "traditional supplies were diverted" to Europe after the outbreak of the Ukraine conflict in February 2022.
"The United States at that time actively encouraged such imports by India for strengthening global energy markets stability," the Ministry of External Affairs said in a strongly worded statement.
"India's imports are meant to ensure predictable and affordable energy costs to the Indian consumer. They are a necessity compelled by global market situation. However, it is revealing that the very nations criticising India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion," it said.
The Ministry stated that the US "continues" to import from Russia uranium hexafluoride for its nuclear industry, palladium for its EV industry, fertilisers, as well as chemicals.
It also said the European Union, which has also "targeted" India for importing Russian oil, had a bilateral trade of Euro 67.5 billion in goods with Moscow in 2024.
"In addition, it had trade in services estimated at Euro 17.2 billion in 2023. This is significantly more than India's total trade with Russia that year or subsequently. European imports of LNG in 2024, in fact, reached a record 16.5mn tonnes, surpassing the last record of 15.21mn tonnes in 2022," it said.
"In this background, the targeting of India is unjustified and unreasonable. Like any major economy, India will take all necessary measures to safeguard its national interests and economic security," the statement read.
