American retailers have started exploring alternatives and options with Indian textile manufacturers following US President Donald Trump’s decision to impose a 50 per cent tariff on Indian goods, according to an NDTV Profit report.

According to the report citing the management at Gokuldas Exports, "Brands are having discussions with us to find alternatives and options if we have any additional capacities in regions with lower tariffs.".

The new tariff regime is expected to raise costs by 30 to 35 per cent. Industry estimates suggest that this could lead to losses amounting to $4-5 billion.

Leading exporters such as Welspun Living, Gokaldas Exports, Indo Count, and Trident derive 40 to 70 per cent of their sales from the US market. The sector is now concerned about losing a significant share of its business to competing countries like Bangladesh and Vietnam, which face comparatively lower tariffs of around 20 per cent.

The United States remains India’s largest market for textile and apparel exports, accounting for 28 per cent of the total outbound shipments valued at $36.61 billion in the financial year ending March 2025.

The punitive tariff measures were triggered by India’s continued purchase of oil from Russia. In an executive order signed on Wednesday, Trump wrote, "I determine that it is necessary and appropriate to impose an additional ad valorem duty on imports of articles of India, which is directly or indirectly importing Russian Federation oil.".

An initial 25 per cent tariff came into effect on Thursday, with an additional 25 per cent set to be implemented on August 28.

US Retail Giants Exploring Options Amid Trump's 50% Tariff Move: Report

US retailers are exploring alternatives with Indian textile manufacturers following President Trump's 50% tariff on Indian goods, which could raise costs by 30-35% and lead to $4-5 billion in losses. Key exporters like Gokuldas Exports, Welspun Living, and Indo Count rely heavily on the US market, while competitors like Bangladesh and Vietnam face lower tariffs. The tariffs were imposed due to India's oil purchases from Russia.