Trump’s 50% Tariff Pushes Indian Textile Industry into Crisis

US President Donald Trump has announced a steep 50% tariff on Indian goods, a move that has thrown India’s textile industry into a severe crisis. Following the announcement, major US retail giants like Walmart, Amazon, Target, and Gap have immediately halted orders from Indian suppliers. According to reliable sources, Indian exporters were officially informed of this decision on Friday.

Exporters say that US buyers have sent letters and emails requesting them to stop shipments of textiles until further notice. American companies have refused to share the burden of the increased tariffs, insisting that Indian exporters bear the entire cost. Industry officials estimate that export expenses could rise by 30–35%, making it impossible for many exporters to absorb the additional costs.

Experts warn that this move could cut India’s textile orders to the US by 40–50%, causing an annual loss of $4–5 billion (over ₹35,000 crore). Leading Indian exporters like Welspun Living, Gokaldas Exports, Indo Count, and Trident — which depend on the US market for 40–70% of their sales — are expected to be hit hardest. The situation could benefit competitors like Bangladesh and Vietnam, which face only a 20% US tariff. The Confederation of Indian Textile Industry (CITI) has called this a major blow to India, noting that in 2024–25, the US accounted for 28% of India’s $36.61 billion textile and apparel exports. The industry is now facing deep uncertainty.