Walmart, Amazon, Target Halt Orders from India As Trump’s Tariff War Bites Hard
Major US retail giants, including Walmart, Amazon, Target, and Gap, have reportedly halted all new orders from India, delivering a severe blow to the country’s export sector. The move is a direct fallout of US President Donald Trump’s decision to impose a crippling 50% tariff on all Indian goods, a punitive measure for New Delhi’s continued energy trade with Russia.
According to sources cited by NDTV Profit, Indian exporters, particularly in the apparel and textile sectors, have begun receiving emails and letters from their American buyers instructing them to pause shipments until further notice.
The situation is further complicated by the fact that these US companies are reportedly unwilling to share the new cost burden, instead demanding that Indian suppliers absorb the entirety of the tariff impact, which is expected to increase their operational costs by 30% to 35%.
The immediate freeze on orders could lead to a catastrophic 40% to 50% drop in US-bound shipments, potentially costing Indian businesses between $4-5 billion.
The United States is the single largest export destination for Indian textiles and apparel, accounting for 28% of the sector’s total exports. Major firms like Welspun Living, Gokaldas Exports, and Trident, which derive a substantial portion of their revenue from the US market, are now facing immense uncertainty.
There is a growing fear among exporters that they will lose their hard-won market share to competitors like Bangladesh and Vietnam, which face a much lower 20% tariff and now have a significant competitive advantage.
The crisis was triggered by President Trump’s executive order this week, which imposed the steep tariffs as a penalty for India’s purchase of Russian oil. India has fiercely contested the move, with the Ministry of External Affairs labeling the tariffs “unfair, unjustified and unreasonable” and vowing to take all necessary measures to protect the country’s national interests.
The ministry reiterated that its energy imports are dictated by market dynamics and the need to ensure energy security for its 1.4 billion citizens.
