Major American retailers stop orders from India after Trump doubles tariff

NEW DELHI: Major American retailers have reportedly stopped orders from India after US President Donald Trump imposed a 50 percent import duty on Indian products. Major retailers like Walmart, Amazon, Target, and Gap have temporarily stopped placing orders. Reports indicate that exporters have received emails in this regard. Reports hint that American retailers have said that they cannot bear the burden of the additional import duty and that exporters should bear it themselves.

It is expected that the cost of importing goods from India with the high tariff will increase by about 30 percent from the current level. It is estimated that orders to the US will decrease by 40 to 50 percent, and India will lose $4-5 billion due to this.

Textiles, jewellery, and seafood are the main exports from India to the US. The US is one of the largest export destinations for Indian textiles and clothing. 28 percent of India's garment exports go to the US, bringing in crores of rupees. It is estimated that the US companies' refusal to accept Indian orders will benefit countries like Bangladesh and Vietnam. Both countries have an import duty of only 20 percent.

Meantime, India is adamant that they will not fall before Trump's 50 percent import tariff. Prime Minister Narendra Modi said yesterday that no action will be taken that would harm the interests of the country's farmers and fishermen. This situation will be used as an opportunity to take alternative measures to strengthen the economy. The moves will also be energized at the political level.

US President Trump announced tough action the other day in the name of oil imports from Russia. The announcement came at a time when the extraordinary situation is also affecting the agricultural sector. Modi was addressing the MS Swaminathan Centenary Conference.