Amazon, Walmart, Target, Gap halt orders from India after Trump doubles tariff: Report

New Delhi: Major US retailers, including Walmart, Amazon, Target, and Gap, have halted orders from India after US President Donald Trump imposed a 50 per cent tariff on Indian goods, according to sources. 

Exporters have received letters and emails from US buyers requesting that they pause apparel and textile shipments until further notice.

The buyers are unwilling to share the cost burden and want exporters to absorb costs, sources said.

Higher tariffs are expected to increase costs by 30 per cent to 35 per cent. It could also lead to a 40 per cent to 50 per cent drop in US-bound orders, causing about $4-5 billion loss.

Major exporters like Welspun Living, Gokaldas Exports, Indo Count and Trident make about 40 per cent to 70 per cent of sales in the US.

Exporters now fear losing orders to Bangladesh and Vietnam, which face a 20 per cent tariff.

The United States is the largest export destination for Indian textiles and apparel. The country accounted for 28 per cent of total textiles and apparel exports valued at $36.61 billion in the fiscal year that ended March 2025.

Trump's Tariffs On India

Donald Trump has imposed a 50 per cent tariff on India, including 25 per cent that kicked in on Thursday and another 25 per cent due to come into effect on August 28 as a penalty for buying Russian oil.

"I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil," he wrote in an executive order signed on Wednesday.

India said the US tariffs were "unfair, unjustified and unreasonable".

"The United States has in recent days targeted India's oil imports from Russia. We have already made clear our position on these issues, including the fact that our imports are based on market factors and done with the overall objective of ensuring the energy security of 1.4 billion people of India," the Ministry of External Affairs said in a statement.

It said it was "extremely unfortunate" that the US should choose to impose additional tariffs on India for actions that several other countries are also taking in their own national interest.

"India will take all actions necessary to protect its national interests," it added.