Desk Report,
Major US brands including Walmart, Amazon, Target and Gap suspend clothing orders placed in India
After the imposition of 50 percent duty on Indian products, major US retailers including Walmart, Amazon, Target and Gap have started suspending orders for ready-made garments placed by Indian suppliers.
Major US brands including Walmart, Amazon, Target and Gap suspend clothing orders placed in India
This was reported in an NDTV news report. It said that after imposing a 25 percent counter-tariff, the US administration imposed an additional 25 percent duty on Indian exports to the US market ‘for buying Russian fuel oil’. Even then, Indian ready-made garment exporters started receiving emails from US buyers asking them to suspend their orders. The emails asked them to suspend their orders until further notice. Citing sources, NDTV said that US buyers are not willing to share the burden of the high duty. They are asking Indian exporters to bear the cost.
Due to the high duty, ready-made garment exports from India to the US market may increase by 30-35 percent. Due to this, US orders in India may decrease by 40-50 percent. Indian exporters are fearing losses of up to several billion dollars.
Major Indian exporters like Welspun Living, Gokuldas Exports, Indo Count and Trident export 40-70 percent of their total exports to the United States. The United States is the largest market for Indian ready-made garments and textiles.
India is the fourth largest exporter of ready-made garments in the US market. Last year, India exported ready-made garments worth $4.69 billion. India’s main competitors in this market are Bangladesh and Vietnam. As a result, orders transferred from India due to high tariffs may go to these two countries. The reason is that the US administration has imposed 20 percent counter-tariffs on Bangladesh and Vietnam.
Of the 50 percent tariff imposed by US President Donald Trump on India, 25 percent came into effect from Thursday. The remaining 25 percent will be effective from August 28.
The Confederation of Indian Textile Industry (CITI), the apex body of the Indian textile industry, said in a statement that the 50 percent tariff is a matter of deep concern for India. The organization said, “The tariffs announced by the US on August 6 are a huge setback for Indian textile and apparel exporters. We were already facing an adverse situation. This new tariff will make it even more complicated. Our competitiveness in the international market will decrease.” They urged the government to take immediate steps to support the sector in this difficult time.
Not only ready-made garments and textiles, but also India’s leather, chemicals, footwear, gems and jewelry and shrimp export sectors will be hit the hardest by the additional 50 percent tariff, according to industry experts in the country.
