US Retail Giants Halt Indian Orders Amid 50% Tariff Hike
Major US retailers, including Amazon, Target, and Gap, have paused orders from India following a 50% tariff imposition by the US on Indian goods, leading to potential cost increases and a significant drop in US-bound orders.
Us RetailersIndian TariffsTrade RelationsApparel And TextilesEnergy ImportsReal Estate MumbaiAug 09, 2025
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.
Frequently Asked Questions
Why did US retailers pause orders from India?
US retailers paused orders from India due to the 50% tariff imposed by the US on Indian goods, which significantly increases the cost of imports.
What is the expected impact of the 50% tariff on US-bound orders?
The 50% tariff is expected to increase costs by 30% to 35% and could lead to a 40% to 50% drop in US-bound orders, resulting in a potential $4-5 billion loss for Indian exporters.
How are Indian exporters expected to handle the cost burden?
US buyers are requesting Indian exporters to absorb the additional costs, which is causing financial strain for the exporters.
What is India's stance on the US tariffs?
India views the US tariffs as 'unfair, unjustified, and unreasonable' and has criticized the US for targeting actions that other countries are also taking in their national interest.
How does India justify its oil imports from Russia?
India justifies its oil imports from Russia as necessary to ensure predictable and affordable energy costs for its 1.4 billion people, emphasizing that these imports are based on market factors and national energy security.
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