US Retail Giants Halt Indian Orders Amid 50% Tariff Hike

On Friday, major US retailers such as Amazon, Target, and Gap have temporarily halted orders from India after the US President Trump imposed a 50% tariff on Indian goods, sources revealed to NDTV Profit.

US buyers have sent letters and emails to Indian exporters requesting them to pause apparel and textile shipments until further notice. According to NDTV World, the buyers are unwilling to share the cost burden and expect the exporters to absorb the additional costs.

The United States has recently targeted India's oil imports from Russia. The Ministry of Affairs stated, 'We have already made clear our position on these issues, including the fact that our imports are based on market factors and are done with the overall objective of ensuring the energy security of 1.4 billion people of India.'

Higher tariffs are expected to increase costs by 30% to 35%. This could also lead to a 40% to 50% drop in US-bound orders, causing an estimated $4-5 billion loss. Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident make about 40% to 70% of their sales in the US. India has criticized the US tariffs as 'unfair, unjustified, and unreasonable.'

India's imports are intended to ensure predictable and affordable energy costs for the Indian consumer. They are a necessity compelled by the global market situation. The Ministry of External Affairs emphasized, 'It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion.'

The Ministry of External Affairs also expressed its dismay, stating 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 national interest.' The ministry further noted that the United States had previously encouraged such imports by India to strengthen global energy market stability.