US tariffs imposed on India: Walmart, Amazon to halt Indian RMG orders
Staff Reporter :
Global retail giants including Walmart, Amazon, Target, and Gap have begun suspending ready-made garment (RMG) orders from India following the United States’ decision to impose a steep 50percent import duty on Indian products, according to a report by NDTV.
The additional 25percent tariff, announced by President Donald Trump on August 6 as a retaliatory measure over India’s continued import of Russian oil, comes on top of a previously existing 25percent duty. This doubling of tariffs has sharply increased the cost of Indian exports to the US, severely disrupting trade flows and diplomatic ties between the two countries.
In a clear response, New Delhi has frozen planned purchases of US weapons and aircraft, and cancelled Defence Minister Rajnath Singh’s scheduled visit to Washington, where multi-billion-dollar defence deals were expected to be finalized.
NDTV reported that several major US retailers have sent formal communications to their Indian suppliers, instructing them to halt all active and upcoming orders until further notice. These buyers have also refused to absorb the added cost, instead pushing Indian exporters to shoulder the full tariff burden.
Leading Indian exporters such as Welspun Living, Gokuldas Exports, Indo Count, and Trident are among those most affected. These companies depend on the US for 40percent to 70percent of their total exports. India, currently the fourth-largest RMG exporter to the US, earned $4.69 billion from this sector in 2024 alone.
Industry insiders warn that the 50percent tariff could raise the final price of Indian garments in the US market by 30-35percent, making them significantly less competitive compared to Bangladesh and Vietnam, which are only subject to 20percent counter-tariffs. This shift may result in a 40-50percent drop in US orders for Indian RMG manufacturers over the coming months.
The Confederation of Indian Textile Industry (CITI) described the tariff hike as a devastating blow.
“The tariffs announced by the US on August 6 are a huge setback for Indian textile and apparel exporters. We were already operating under challenging conditions.
This new tariff structure further threatens our competitiveness in the global market,” CITI said in a statement.
The organisation has urged the Indian government to launch urgent diplomatic negotiations and roll out financial relief measures to safeguard a sector that employs millions and forms a cornerstone of the country’s export economy.
Beyond garments, industry analysts warn that other sectors-leather, footwear, chemicals, gems and jewelry, and shrimp-are also facing serious risks of export losses, potentially costing India billions in trade revenue. The situation highlights the vulnerability of India’s export-driven industries in the face of rising geopolitical and economic tensions.