US President Donald Trump’s 50% tariff on Indian goods, driven by India’s Russian oil purchases, has disrupted India’s apparel and textile sector.
Major US retailers like Walmart, Amazon, Target, and Gap have paused imports from Indian exporters unwilling to bear added costs, according to an NDTV report. Industry estimates suggest apparel and textile costs could rise 30-35%, potentially slashing US-bound orders by 40-50% with losses reaching $4-5 billion annually.
Companies like Welspun, Gokaldas Exports, and Trident, heavily reliant on US markets for 40-70% of sales, face significant risks. The initial 25% tariff took effect August 7 with the full 50% set for late August though select products and in-transit shipments are temporarily exempt.
Trump ruled out trade talks with India until the tariff dispute resolves, dimming hopes for immediate relief. China condemned the move with its Delhi-based ambassador criticizing Trump’s tariff tactics as contrary to UN principles in an X post.
Read more: India Stands Firm on Trade Despite U.S. 50% Tariff Hike
Indian exporters brace for impact, with fears of factory closures and job losses looming. Negotiations remain critical to mitigate damage to India’s $36.61 billion textile export market where the US accounts for 28%.
