U.S. retail giants - including Amazon, Walmart, Target, Gap, H&M, and TJX - have abruptly halted apparel and textile shipments from India after President Trump’s decision to double tariffs on Indian goods to 50% . Exporters reported receiving urgent letters and emails directing them to pause outgoing dispatches - even for items already prepared for delivery - pending further guidance .

The new tariff regime raises export costs by 30–35%, which could slash U.S.-bound orders by 40–50%, potentially translating into a staggering $4–5 billion loss for India’s textile and apparel sector . Leading exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident—whose U.S. sales range from 40–70% of total revenues - are bracing for massive disruption .

This tariff increase stems from Delhi’s continued Russian oil purchases; the first 25% duty took effect immediately, with an additional 25% scheduled for August 28.

As Indian exporters scramble to adapt, there's growing concern that businesses may lose ground to competitors like Bangladesh and Vietnam, who face much lower tariffs of around 20%.