Gap, Amazon, Target and Walmart Halt Indian Textile Shipments Amid 50% Tariff Imposition

Tariffs punish India. Major U.S. retailers such as Walmart, Amazon, Target and Gap have called for a pause in shipments to Indian exporters, mainly in the textile sector, because of the 50% tariff imposition.

According to the local channel Ndtv Profit and reported by EFE, buyers are not willing to assume the costs that include a 25% tariff, which came into force yesterday, and the threat of another 25% at the end of the month. The media anticipate a drastic drop in exports and losses in the millions.

Retail giants have reportedly sent e-mails and letters to their suppliers in India, requesting a freeze on garment and textile shipments until further notice. The president of the Tiruppur Exporters Association, A. Sakthivel, has confirmed his members’ decision to suspend production for the U.S. market.

The Confederation of Indian Textile Industry (Citi) yesterday called the tariffs a “huge setback” for the sector, which will “significantly weaken” its industrial capacity to compete.

Retail giants have sent e-mails and letters to Indian suppliers, and they have suspended production

India is the fourth largest exporter of apparel to the United States, with a market share of around 6%. China dominates with 21% and Vietnam with 19%. With the new 50% tariffs, India suffers a major disadvantage vis-à-vis these countries, with tariffs of between 20% and 30%.

India has recently emerged as the fashion industry’s latest big bet, thanks to its pricing strategy, product adaptation and speed in capturing opportunities. In its latest budgets, in fact, the country increased the amount allocated to the Ministry of Textiles by up to 15%.

Until the beginning of the year, U.S. companies were looking for alternative suppliers to those they already had in China, for example, and Indian exporters even had problems responding to the flood of orders from the country. Last year, textile and apparel exports rose by as much as 7% year-on-year to $23 billion.