US Tariffs on Indian Goods: Walmart, Amazon, Target Reportedly Halt India Orders
Big picture: The United States has imposed an additional 25% tariff on many Indian goods in August 2025, taking total duties on some lines to as high as 50%. In the immediate aftermath, multiple reports indicate large US retailers have paused or reduced orders from Indian suppliers due to cost pressures and uncertainty. India has termed the move “unfair,” with Prime Minister Narendra Modi vowing to protect farmers and core sectors.
Watch: Full discussion & updates
Key Points
Editor’s note: Corporate ordering decisions can vary by category and time; the situation is evolving as buyers and suppliers renegotiate pricing and delivery terms.
Timeline
| Date | Development |
|---|---|
| Aug 6–7, 2025 | US announces an extra 25% tariff on Indian goods, pushing some duties to ~50%. |
| Aug 7–14, 2025 | Reports of paused orders and shipment holds from several US buyers; Indian exporters reassess margins and pricing. |
| Aug 14, 2025 | India reiterates the move is unfair; government says farmer and MSME interests will be protected; exporters diversify to alternate markets. |
Which Sectors Are Most Exposed?
- Textiles & Apparel: Thin margins make a sudden 25% surcharge hard to absorb.
- Auto Components: US is a key market; near‑term export declines are likely as contracts reset.
- Gems & Jewellery: Risk of market share loss to alternative Asian suppliers.
- Chemicals (incl. specialty): Order deferrals and price renegotiations reported.
- Ceramics (tiles, sanitary ware): High shipping + higher duties strain competitiveness.
- Agri & Food: Frozen foods, spices, and related products face demand softness.
What Exporters Can Do Now
- Re-price contracts with transparent cost breakdowns; consider shared‑burden clauses for sudden duty changes.
- Diversify buyers and geographies (EU, Middle East, ASEAN) to reduce single‑market risk.
- Explore tariff engineering (HTS reclassification where compliant), partial value‑add outside India, or alternate logistics.
- Negotiate payment terms to manage cash‑flow during order pauses; use export credit insurance.
- Leverage India’s export promotion schemes and state‑level support for MSMEs affected by tariff shocks.
हिंदी सार (Quick Hindi Summary)
बड़ी खबर: अमेरिका ने भारतीय सामान पर अतिरिक्त 25% टैरिफ लगाया है, जिससे कुछ उत्पादों पर कुल शुल्क ~50% तक हो गया है। इसके बाद रिपोर्ट्स के मुताबिक Walmart, Amazon, Target जैसे रिटेलर्स ने भारत से नए ऑर्डर अस्थायी रूप से रोक दिए हैं। भारत ने इस कदम को “अनुचित” बताया है। प्रधानमंत्री मोदी ने कहा कि किसानों और प्रमुख सेक्टर्स के हितों से समझौता नहीं होगा।