The United States’ imposition of a 50% tariff on Indian goods has prompted major US retailers, including Amazon, Walmart, Target, and Gap, to halt new orders from India. The repercussions of this decision are expected to be substantial for India’s economy. With the US representing a crucial market for Indian exports, the tariff increase is projected to affect nearly 55% of these exports. This could translate into a 40-50% decrease in orders destined for the US, potentially leading to a loss of $4-5 billion in export earnings. Exporters have been informed by US buyers to temporarily suspend apparel and textile shipments, as the buyers are unwilling to absorb the added financial burden. Leading exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident, who rely heavily on the US market for sales, are likely to experience significant disruption.
Economic Fallout: India Faces Challenges as US Retailers Suspend Orders Due to Tariffs
