Many companies including Amazon put India’s orders on hold; Trump tariffs’ effect visible

After the US imposed 50 percent tariff on India, major US retailers including Amazon, Target and Gap have now put orders from India on hold. Indian exporters were already worried that their orders could be affected by the increase in tariff.

NDTV has claimed, citing sources, that Indian exporters have received letters and emails from US buyers, asking Indian exporters to stop shipment of clothes until further notice.

The cost will increase by 35 percent

Actually, US companies want Indian exporters to bear the burden of the increased cost due to tariff. The cost of goods sold in the US is likely to increase by 30 to 35 percent due to tariff. India has major exporters like Welspun Living, Gokaldas Exports, Indo Count and Trident, which sell 40 to 70 percent in the US.

It is believed that now due to the orders going to America being put on hold, there can be a 40 to 50 percent decline in trade. Actually, the largest quantity of clothes from India is exported to America. But due to the tariff, India’s orders can go to Bangladesh and Vietnam.

Donald Trump has imposed a 50 percent tariff on India, while it is only 20 percent on Bangladesh and Vietnam. India had opposed this decision of Trump calling it illogical, while Trump is adamant on it. At present, there is no possibility of this problem being solved until a trade deal is done.