Dhaka, Aug 09 (V7N) – Major US retail brands including Walmart, Amazon, Target, and Gap have temporarily stopped placing orders for ready-made garments from Indian suppliers following a sharp increase in tariffs imposed by the US government.

The US administration, led by former President Donald Trump, has doubled tariffs on Indian goods to 50%, citing India’s continued imports of Russian crude oil as justification. The tariff hike came in two phases — a 25% tariff effective August 7 and an additional 25% from August 28.

According to industry sources reported by NDTV and CNN, US buyers are unwilling to absorb the increased costs and are asking Indian exporters to bear the burden. This has led many buyers to pause orders and seek alternatives in countries like Bangladesh and Vietnam, where tariff rates remain at 20%.

Rahul Mehta, chief consultant at the Clothing Manufacturers Association of India, said the 50% tariff could increase the price of Indian garments by 30-35%, making them less competitive compared to rivals in Bangladesh and Vietnam. He warned that the tariff hike might cause significant export order declines, factory closures, and job losses.

India’s Ministry of External Affairs called the tariffs “unfair and unreasonable,” emphasizing that India’s oil imports are market-based and essential for the country’s energy security. The ministry criticized the US for singling out India while continuing to import various Russian goods, and highlighted the European Union’s higher trade volume with Russia as evidence of inconsistent policy.

This tariff escalation poses a serious challenge to India’s garment industry, the world’s sixth-largest exporter of textiles and clothing. Exporters are now considering adding value and diversifying their markets to mitigate the impact.

END/RH/AJ