US President Donald Trump. AP/PTI
US retailers halt orders from India after Trump’s 50 pc tariff order: Report
Indian exporters have reportedly received letters and emails from American buyers, requesting that they pause apparel and textile shipments until further notice
Leading US retailers reportedly halted orders from India following US President Donald Trump’s imposition of a steep 50 per cent tariff on Indian imports, according to people familiar with the development.
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Indian imports halted
According to an NDTV report, Indian exporters have been requested, in letters and emails sent by American buyers, to pause shipments of apparel and textiles until further notice.
American retailers are reportedly unwilling to share the cost burden and want Indian exporters to bear the financial burden, according to people familiar with the matter.
The elevated US tariffs are expected to raise costs by 30 to 35 per cent. This could result in a drastic decline in US-bound orders, by as much as 40 to 50 per cent, potentially leading to a revenue loss of $4-5 billion for Indian exporters.
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Big blow to textile sector
Major Indian textile exporters, which derive approximately 40 to 70 per cent of their sales from the US, are expected to be severely impacted.
India, the world’s sixth-largest exporter of textiles and apparel, now fears losing orders to Bangladesh and Vietnam, which face a 20 per cent US tariff.
These countries may benefit from the shift in demand as buyers explore cheaper sourcing alternatives.
The United States is the largest export market for India's textile and apparel industry, accounting for 28 per cent of the country’s total exports in this category. In the financial year ending March 2025, India’s textile and apparel exports were valued at $36.61 billion.
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Trump's tariff order
The White House on Wednesday (August 6) issued an Executive Order raising tariffs on Indian imports to 50 percent in response to India’s continued import of Russian oil.
“I find the government of India is currently, directly or indirectly, importing Russian Federation oil... in my judgement I determine it necessary to impose an ad valorem duty on imports of articles from India,” Trump wrote in the order.
The initial 25 percent tariff came into effect on August 7, with another 25 per cent due to come into effect from August 28, raising the total tariff share to 50 per cent.
The order reportedly includes exemptions for goods already in transit and grants the US President the flexibility to modify the measure based on geopolitical shifts or reactions from impacted countries.
India said the US tariffs were "unfair, unjustified and unreasonable". "India will take all actions necessary to protect its national interests," it said.