As the trade war continues between India and the U.S., Amazon, Walmart, and other big U.S. Retail companies call for a stop in orders from India. On Wednesday (August 6), U.S. President Donald Trump imposed tariffs on products from India by a huge 50%, effective from August 28. India has long been a major exporter of apparel and textiles to the U.S. The total value of these exports was $36.61 billion by March 2025. And now, Indian exporters are receiving calls and emails saying either you bear the costs or we stop buying, until further notice. It’s a massive blow to India, and here’s why.
Reasons Why American Companies Don’t Want To Import From India
U.S. President Donald Trump has been attacking India for buying oil from Russia. He pressed (what he thought was ‘punishment’) 25% tariffs on India that took effect on Thursday. When India didn’t budge, he pressed another 25% which now makes a staggering 50% tariffs.
“I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.” Said the U.S. President Donald Trump.
What Does 50% Tariff Mean to Indian Textile Exporters?
It simply means that when American companies buy goods from India, it will cost more (and a 50% tariff is a lot). Notably, about 28% of India’s textile exports go to the U.S. Companies like Walmart, Amazon, Target, and Gap, which buy apparel and textiles from India, are having second thoughts. There are two ways in which American companies look into this:
- As no giant wants to pay such hefty taxes, they are asking the exporters to bear the extra costs. It’s a far-fetched scenario given that costs for Indian sellers may go up by 30–35%.
- The other way around is to stop buying, and unfortunately, it is already happening to the Indian export companies. It will result in a massive order drop of 40–50% from the U.S.
Indian Companies like Welspun Living, Gokaldas Exports, Indo Count, and Trident are facing the heat because 40-70% of their sales come from the U.S.
Reportedly, many have received calls and emails asking to stop sending goods for the time being. If this continues, the industry might certainly lose around $4–5 billion.
Final Thoughts
India worries about losing its business to other countries like Bangladesh and Vietnam, which have only 20% taxes on their goods going to the U.S. Notably, there’s still time till August 28 to negotiate things. Still, the real question is, will India and the U.S. talk through it?
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