No Indian products for now, say Amazon, Walmart, Target, Gap

Tariff-driven disruption leaves exporters holding unsent goods with no return date from buyers

Major US retailers including Walmart, Amazon, Target and Gap have suspended imports of apparel and textile products from India after President Donald Trump imposed a 50 percent tariff on Indian goods.

NDTV Profit, citing industry sources, reported that Indian exporters have received letters and emails from American buyers instructing them to hold shipments of apparel and textile products until further notice.

The retailers, unwilling to absorb the additional duty, are seeking to pass the extra cost onto exporters, it added.

With costs rising by an estimated 30 percent to 35 percent due to the tariff hike, exporters warn that US-bound orders could fall by 40 percent to 50 percent.

The impact may cause losses ranging from $4 billion to $5 billion.

Major Indian exporters such as Welspun Living, Gokaldas Exports, Indo Count and Trident rely heavily on the US market, with 40 percent to 70 percent of their sales tied directly to American retailers.

The US is also the biggest export destination for India’s textile and garment industry.

In the financial year ending March 2025, 28 percent of India’s total $36.61 of textile and garment exports went to the US.

As the world’s sixth largest textile and garment exporter, India now fears losing orders to Bangladesh and Vietnam, which face a 20 percent tariff instead.