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Exporters have reportedly received emails and letters from US buyers asking them to halt apparel and textile shipments until further notice.
Buyers like Walmart are unwilling to absorb the increased cost burden and are instead pressuring Indian exporters to shoulder the financial impact themselves.
Several major American retailers, including Walmart, Amazon, Target and Gap, have suspended orders from India following US President Donald Trump’s decision to impose a 50 per cent tariff on Indian goods, according to an NDTV Profit report citing sources.
Exporters have reportedly received emails and letters from US buyers asking them to halt apparel and textile shipments until further notice. According to NDTV Profit, these buyers are unwilling to absorb the increased cost burden and are instead pressuring Indian exporters to shoulder the financial impact themselves.
The new tariff regime is expected to raise costs by 30 to 35 per cent, potentially resulting in a 40 to 50 per cent drop in US-bound orders. Industry estimates suggest that this could lead to losses amounting to $4-5 billion.
Leading exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident derive 40 to 70 per cent of their sales from the US market. The sector is now concerned about losing a significant share of its business to competing countries like Bangladesh and Vietnam, which face comparatively lower tariffs of around 20 per cent.
The United States remains India’s largest market for textile and apparel exports, accounting for 28 per cent of the total outbound shipments valued at $36.61 billion in the financial year ending March 2025.
The punitive tariff measures were triggered by India’s continued purchase of oil from Russia. In an executive order signed on Wednesday, Trump wrote, “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.”
An initial 25 per cent tariff came into effect on Thursday, with an additional 25 per cent set to be implemented on August 28.
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al…Read More
A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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