Following President Donald Trump’s decision to impose a 50% tariff on Indian goods, major US retailers including Amazon, Walmart, Target, and Gap have ceased placing new orders from India. This move is expected to significantly impact the Indian economy, given the US’s position as India’s largest market. The tariff hike could affect approximately 55% of these exports, potentially leading to a 40-50% reduction in US-bound orders, and resulting in an estimated loss of $4-5 billion in export revenue. Exporters have already received notifications from US buyers requesting the suspension of apparel and textile shipments, with the buyers unwilling to bear the increased costs. Major exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident, who derive a substantial portion of their sales from the US market, are now facing considerable uncertainty.
