US tariffs hit India’s textile exports
Major US retailers — including Walmart, Amazon, Target, and Gap — have suspended orders from India following US President Donald Trump’s decision to impose a 50% tariff on Indian goods, industry sources said on Friday.
Exporters have received formal letters and emails from US buyers instructing them to pause apparel and textile shipments until further notice. Buyers have reportedly refused to share the additional cost burden, asking exporters to absorb it entirely.
Industry estimates suggest the higher tariffs will raise costs by 30%–35% and could slash US-bound orders by 40%–50%, translating into losses of $4–5 billion.
Large exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident — which depend on the US market for 40%–70% of their sales — face immediate disruption.
India, the sixth-largest exporter of textiles and apparel globally, now risks losing orders to competitors like Bangladesh and Vietnam, which face a lower 20% tariff. The US is India’s largest textile and apparel export market, accounting for 28% of total exports worth $36.61 billion in FY2024–25.
Trump’s tariff decision
President Trump announced the new tariffs in two phases — 25% effective Thursday, with another 25% to follow on August 28 — as a penalty for India’s continued import of Russian oil.
In his executive order signed Wednesday, Trump stated it was “necessary and appropriate” to impose an additional ad valorem duty on imports from India, which he accused of “directly or indirectly” importing Russian oil.
India’s response
India’s Ministry of External Affairs (MEA) denounced the move as “unfair, unjustified, and unreasonable,” saying it was “extremely unfortunate” that the US chose to impose additional tariffs for actions “several other countries are also taking in their own national interest.”
The MEA stressed that India began importing Russian oil after traditional supplies were diverted to Europe following the Ukraine conflict in February 2022 — a move the US itself encouraged at the time to stabilize global energy markets.
“India’s imports are meant to ensure predictable and affordable energy costs for 1.4 billion people. They are a necessity compelled by global market conditions,” the MEA said, adding that critics like the US and EU themselves continue substantial trade with Russia.
Pointing out double standards
The ministry highlighted that the US continues to import Russian uranium hexafluoride for its nuclear sector, palladium for its EV industry, as well as fertilizers and chemicals. It also noted that the EU maintained a goods trade of €67.5 billion with Russia in 2024 and imported a record 16.5 million tonnes of LNG that year.
“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 concluded.
For all the latest updates, download PGurus App.
Good development. Love Dump Stump is lonely & isolated. He needs sympathy & solace. May God bless him & take him to lap & give few strong strokes on Dump Stump back