Amazon, Walmart, Target Halt Orders From India as US Tariffs Double to 50%
Exporters Face Rising Costs and Order Losses
The higher tariff burden, split into
a 25% hike already in effect and another 25% set for August 28, is expected to
raise costs by 30–35%. US buyers are reportedly unwilling to share the added
costs, pressuring exporters to absorb them. Industry insiders warn that the
move could slash US-bound orders by 40–50%, potentially causing losses of $4–5
billion.
Key exporters such as Welspun
Living, Gokaldas Exports, Indo Count, and Trident — which derive 40–70% of
their sales from the US — are likely to be most affected. The United States,
India’s largest textile and apparel export destination, accounted for 28% of
the sector’s $36.61 billion export value in FY25. With the tariff gap widening,
India risks losing business to Bangladesh and Vietnam, both of which face only
a 20% duty.
US Tariffs Linked to Russian Oil Imports
The tariff escalation is part of a
penalty for India’s continued purchase of Russian oil. President Trump stated
in an executive order that the move was “necessary and appropriate” given
India’s direct and indirect imports from Russia.
India’s Ministry of External Affairs
(MEA) condemned the tariffs as “unfair, unjustified and unreasonable,” arguing
that its energy imports are driven by market conditions and the need to ensure
energy security for 1.4 billion citizens. The MEA also accused the US and EU of
hypocrisy, pointing out that both continue significant trade with Russia —
including uranium, palladium, LNG, and other goods — while criticising India.
Industry Outlook and Trade Risks
The apparel and textile sector,
where the US remains a critical market, is bracing for a slowdown. Exporters
fear a long-term shift of orders to competing markets if tariffs persist. Trade
analysts warn that the penalties could alter global sourcing patterns,
impacting India’s position as the sixth-largest textile and apparel exporter
worldwide.
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