New Delhi | August 8, 2025 : In a major blow to India’s textile and apparel industry, top U.S. retailers — including Amazon, Walmart, Target, and Gap — have stopped placing new orders from Indian suppliers after President Donald Trump doubled tariffs on imports from India.

Exporters say buyers have sent official letters and emails instructing them to pause shipments until further notice. With the new tariffs set to push costs up by 30–35%, U.S. retailers are unwilling to absorb the hike and want Indian exporters to bear the extra burden.

The impact could be severe — early estimates suggest a 40–50% drop in orders headed to the U.S., translating into potential losses of $4–5 billion for India’s textile and apparel sector. Big names like Welspun Living, Gokaldas Exports, Indo Count, and Trident — which depend on the U.S. for nearly half or more of their revenue — are likely to be hit the hardest.

The U.S. is India’s largest market for textiles and apparel, accounting for 28% of the sector’s $36.61 billion exports in FY 2024–25. With tariffs now at 50%, India fears losing ground to competitors like Bangladesh and Vietnam, which face lower duties.

The Russian oil link
The Trump administration says the tariff hike is a direct response to India’s continued import of oil from Russia. The increase includes a 25% rise already in effect and another 25% kicking in on August 28.

India has slammed the move as “unfair, unjustified, and unreasonable,” stressing that its energy imports are driven by market needs to secure fuel for 1.4 billion people. Officials also accused the U.S. and Europe of hypocrisy, pointing out that both continue significant trade with Russia in goods like uranium, palladium, fertilisers, and LNG.

Despite the pressure, India says it will take “all necessary steps” to protect its national interest and economic security.