Top U.S. retail giants Amazon, Walmart, Target, and Gap have suspended orders for textiles and apparel from India, Indian news outlet NDTV reported, citing multiple sources.
The decision comes in the wake of U.S. President Donald Trump’s recent tariff hike on Indian products, raising duties to 50 percent. The first phase of the hike—25 percent—has already taken effect, while the remaining 25 percent will be enforced starting August 28.
According to the Trump administration, the punitive tariffs were imposed because India continues to import oil from Russia. An executive order stated that, as India is directly or indirectly purchasing Russian oil, it is “necessary and appropriate” to impose additional duties on imported Indian goods.
Following the tariff announcement, American buyers sent letters and emails to Indian exporters requesting that existing purchase orders be put on hold. Many U.S. importers expressed unwillingness to bear the increased costs, instead pressuring exporters to absorb them. This could significantly reduce profit margins for Indian suppliers.
Industry insiders warn that the higher tariffs could push production costs up by 30–35 percent, likely reducing exports to the U.S. and potentially causing losses of $4–5 billion for India.
The United States is India’s largest market for textiles and apparel. In the 2024–25 fiscal year, the U.S. accounted for 28 percent of India’s total textile and clothing exports worth $36.61 billion.
