08/08/2025
After the US imposed a 50 percent tariff on India, major US retailers including Walmart, Amazon, Target and Gap have put orders from India on hold. Indian exporters were already worried that their orders could be affected by the increase in tariffs.
NDTV has claimed, citing sources, that Indian exporters have received letters and emails from US buyers, which say that Indian exporters should stop shipment of clothes till further notice.
Actually, US companies want Indian exporters to bear the burden of the increased cost due to tariffs. The cost of goods sold in the US is likely to increase by 30 to 35 percent due to tariffs. India has major exporters like Welspun Living, Gokaldas Exports, Indo Count and Trident, which sell 40 to 70 percent of their goods in the US.
It is believed that now due to the orders going to the US being put on hold, there may be a 40 to 50 percent decline in trade. Actually, the largest amount of clothes from India is exported to America. But due to tariff, Bangladesh and Vietnam may get India's order.
Donald Trump has imposed 50 percent tariff on India, while it is only 20 percent on Bangladesh and Vietnam. India had opposed this decision of Trump calling it illogical, while Trump is adamant on it. At present, there is no possibility of this problem getting resolved until a trade deal is done.
