Major U.S. retailers such as Amazon, Walmart, Target, and Gap have abruptly halted both fresh and current textile orders from Indian suppliers following the U.S. government’s imposition of a steep 50% tariff on Indian apparel exports. The move has sent shockwaves through India’s textile sector, raising fears of a steep decline in export revenues
What the Industry Reports
- Frozen Orders & Shipment Holds
Retail giants have instructed suppliers to pause shipments immediately, even stopping dispatches that were already ready for export. - Tariff Breakdown and Effects
The tariff hike comprises an initial 25% levy and an additional 25%, pushing the total to 50%, implemented as a penalty over India’s purchases of Russian oil. - Economic Ramifications for Exports
Exporters estimate a drop of 30–35% in competitiveness, potentially translating to a $4–5 billion loss in annual apparel exports to the U.S. - Supply Chain Shift and Factory Reallocations
Major brands are urging Indian manufacturers to relocate production to countries with lower tariffs, such as Bangladesh, Vietnam, Guatemala, and Ethiopia.
Impact on Key Textile Hubs and Farmers
- Production Centers in Turmoil
Tiruppur, Tamil Nadu—home to over 20,000 manufacturing units—faces mounting disruption as exporters scramble to ship pending orders before tariff enforcement. - Deepening Farmer Crisis
Indian cotton growers, especially in regions like Vidarbha, are already grappling with dropping prices. The shrinking export demand threatens to push prices below the Minimum Support Price (MSP), exacerbating rural distress.
Why It Matters
With the U.S. being the largest marketplace for Indian textile and apparel exports—accounting for nearly 28% of valued supplies—this sudden tariff surge and order freeze could unravel Prime Minister Modi’s “Make in India” policy and destabilize livelihoods across the value chain. The Times of India
