Walmart Halts Shipments from India Amid Rising Tariffs and Cost Hikes

Walmart has halted Indian shipments after President Trump's 50% tariff on Indian goods caused costs to skyrocket. Indian exporters claim US retailers, including Walmart, Amazon, and Target, are discussing alternative suppliers to find lower-tariff options. The US is India's largest export destination for clothing, and the tariffs are expected to increase costs by 30-35% and lead to a 40-50% drop in US-bound orders.

Walmart has temporarily halted shipments from India following President Donald Trump's 50% tariff on Indian goods. The move comes as the US's largest retail chain seeks to mitigate the significant cost increases resulting from the tariffs. Indian exporters have reported that US retailers, including Walmart, Amazon, and Target, are exploring alternative suppliers to find lower-tariff options.

The US is India's largest export destination for clothing, and the tariffs are expected to increase costs by 30-35% and lead to a 40-50% drop in US-bound orders. The punitive tariffs aim to put economic pressure on Moscow to agree to a ceasefire, as India is the second-biggest customer for Russian oil [1].

Prime Minister Narendra Modi is set to chair a crucial high-level Cabinet meeting on Friday to assess the impact of the tariff hike. The US leader has ruled out any further trade negotiations with India until the current tensions are resolved [2].

The Indian government may prioritize support measures for sectors like textiles and chemicals, which would be severely impacted by the US tariffs. The commerce ministry is working on the export promotion mission, announced in the Budget, to address the issues [3].

The US tariffs, which reached levels not seen in nearly 100 years, will have Americans paying an average of 18.3% more for imported products, according to the Budget Lab at Yale [4]. Despite the immediate impact, the Trump White House is confident businesses will ramp up new investments and jump-start hiring in ways that can rebalance the US economy as a manufacturing power [4].

The UN Secretary-General Antonio Guterres has expressed concern about the higher tariffs, noting that they will disproportionately affect the poorest countries [5]. The tariffs are expected to impact only 4.8% of India's total exports, which amounted to $820 billion in 2024-25 [6].

References:
[1] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490
[2] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490
[3] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490
[4] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490
[5] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490
[6] https://www.ndtv.com/world-news/us-india-trade-tariffs-live-news-updates-donald-trump-50-percent-india-tariffs-washington-new-delhi-trade-negotiation-narendra-modi-secondary-sanction-9043490