US Retail Giants Exploring Options Amid Trump’s 50% Tariff Decision: Report
Brands are in talks with us to explore alternatives and options if we have spare capacities in regions with lower tariffs, according to a report.
American retailers have begun exploring alternatives and options with Indian textile manufacturers after US President Donald Trump’s move to impose a 50 per cent tariff on Indian goods.
According to the report, quoting the management of Gokuldas Exports, “Brands are having discussions with us to find alternatives and options if we have additional capacities in regions with lower tariffs.”
The new tariff structure is expected to increase costs by 30 to 35 per cent. Industry estimates indicate that this could result in losses of $4–5 billion.
Major exporters such as Welspun Living, Gokuldas Exports, Indo Count, and Trident earn between 40 and 70 per cent of their revenue from the US market. The industry is now worried about losing a considerable portion of its business to rivals like Bangladesh and Vietnam, which face much lower tariffs of around 20 per cent.
The United States continues to be India’s largest market for textile and apparel exports, accounting for 28 per cent of the total exports worth $36.61 billion in the financial year ending March 2025.
The punitive tariff action was prompted by India’s continued purchase of oil from Russia. In an executive order signed on Wednesday, Trump stated, “I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports from India, which is directly or indirectly importing oil from the Russian Federation.”
An initial 25 per cent tariff came into force on Thursday, with another 25 per cent set to be enforced on August 28.
