Many top US retailers, including Walmart, Amazon, Target, and Gap, have halted new orders from India after President Donald Trump imposed a 50% tariff on Indian goods, as per the NDTV Profit report.

Indian exporters have received emails and letters from US buyers asking them to stop textile and apparel shipments until further notice. Buyers have refused to share the cost burden of the new tariffs, pushing Indian exporters to absorb the rising expenses.

The steep tariffs are expected to increase costs by 30% to 35%, which could result in a 40% to 50% drop in US-bound orders. This could cause an estimated loss of $4–5 billion for India’s textile and apparel industry.

Top exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident are at risk. These companies depend heavily on the US, with 40% to 70% of their revenue coming from American buyers. Exporters fear they will lose business to competitors in Bangladesh and Vietnam, where tariffs are only 20%.

The US is India's largest export market for textiles and apparel. In the fiscal year ending March 2025, the US accounted for 28% of India’s total textile and apparel exports, valued at $36.61 billion.

Trump’s 50% tariff includes 25% that came into effect Thursday and another 25% set to begin on August 28. The move is a penalty for India’s continued purchase of oil from Russia. In his executive order, Trump said countries directly or indirectly importing Russian oil must face consequences.

India responded by calling the move “unfair, unjustified, and unreasonable.” The Ministry of External Affairs said India’s oil imports are driven by market needs and are vital for the energy security of 1.4 billion people. India asserted it will take all necessary steps to defend its national interest.