Target Corporation, headquartered in Minneapolis, Minnesota, USA, announced on May 5 that Gregg Steinhafel has resigned as chairman, president, and CEO following the company’s major data breach in 2013. Despite his exit, Target’s delivery and fulfillment investments, along with accelerated security and payment upgrades, will continue under interim leadership.

Target Corporation, one of the largest retailers in the United States operating nearly 1,800 stores nationwide, announced on May 5 that Gregg Steinhafel has resigned as its chairman, president, and CEO. His resignation follows the massive 2013 data breach that compromised 40 million credit and debit card accounts and exposed personal details of 70 million customers.

In a statement, Target’s board of directors expressed gratitude for Steinhafel’s service, noting his accountability during the crisis and his efforts to strengthen company operations. Steinhafel will serve in an advisory role during the leadership transition.

John Mulligan, Target’s Chief Financial Officer, has been named interim president and CEO, while Roxanne Austin, a board member, will serve as interim non-executive chair. The company is conducting a search for permanent successors.

Following the breach, Target has accelerated its efforts to boost cybersecurity and payment security. Recently, the company appointed Bob DeRodes as Chief Information Officer to lead information technology transformation. The retailer is also seeking a Chief Information Security Officer and a Chief Compliance Officer.

Key security measures implemented include enhanced monitoring and logging, stricter vendor access controls, two-factor authentication for employee accounts, and improved firewall governance. Target has also announced a $100 million initiative to transition its REDcard portfolio to MasterCard’s chip-and-PIN technology, aiming to complete the rollout in all U.S. stores by September 2014.

While leadership changes are underway, Target’s investments in digital innovation, delivery, and fulfillment will remain central to its growth strategy as it works to restore customer confidence and strengthen security.

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India faces a significant setback in its textile and apparel export sector as major US retailers halt orders following a steep 50% tariff imposed by the United States. This sudden shift, linked to India’s continued oil trade with Russia, may result in a loss of up to $5 billion, affecting top Indian exporters and the broader economy.

India’s textile and apparel export industry has been abruptly disrupted after several leading US retailers—including Amazon, Walmart, and Target—suspended orders following a 50% tariff imposed by US President Donald Trump on Indian goods.

This trade escalation stems from the United States’ opposition to India’s continued import of oil from Russia. Exporters confirmed receiving formal communication from US buyers requesting a complete pause on pending and upcoming shipments of textiles and apparel until further notice.

Exporters Bear the Cost Burden as Tariffs Bite

According to exporters, US buyers have refused to absorb the increased duties and have instead asked Indian exporters to bear the full cost impact. The higher tariffs, which include an initial 25% hike effective immediately and an additional 25% set to take effect on August 28, are expected to increase landed costs by 30–35%.

This abrupt cost escalation could lead to an estimated 40–50% drop in US-bound orders, translating to potential export losses of USD 4–5 billion over the fiscal year.

Major Indian textile manufacturers with significant US exposure—many of whom derive 40% to 70% of their revenue from the US—are particularly vulnerable. The US remains India’s single largest export market for textiles and apparel, accounting for 28% of total exports valued at USD 36.61 billion in FY2024–25.

Also Read: India Faces Immediate 50% Tariff Shock – Here’s What It Means

India Criticizes Move as “Unfair and Unjustified”

India’s Ministry of External Affairs condemned the tariff escalation, calling it “unfair, unjustified, and unreasonable.” In a strongly worded statement, the ministry defended its oil import policy, citing national energy security and global market stability.

The government emphasized that India began importing oil from Russia after traditional supplies were diverted to Europe following the Ukraine conflict in 2022. At that time, the US had, in fact, encouraged such diversification to help stabilize global energy markets.

Moreover, the ministry accused the US and several other Western nations of “hypocrisy,” citing their own ongoing trade with Russia in sectors including nuclear fuel, chemicals, palladium, fertilizers, and liquefied natural gas (LNG).

Global Competitors Stand to Gain

With India now facing prohibitive trade barriers in its top export market, countries such as Bangladesh and Vietnam, which continue to face only 20% tariffs on exports to the US, are expected to benefit. The loss of US orders may lead to a supply chain reallocation across Southeast Asia, putting Indian exporters at a competitive disadvantage.

Industry analysts note that this development could permanently shift global sourcing strategies, unless diplomatic or trade relief is achieved. Buyers typically favor stable pricing environments, and with high tariff uncertainty in India, shifting sourcing hubs may become a long-term trend.

Policy and Industry Response Awaited

While the Indian government has vowed to take “all necessary measures” to safeguard national economic interests, industry stakeholders are seeking immediate policy interventions—such as export rebates, subsidy revisions, and active trade negotiations to mitigate the impact.

Given the scale and timing of the disruption, analysts warn that the tariff escalation may have downstream effects on India’s manufacturing employment, spinning mills, and SME exporters, many of whom operate on narrow margins.

As global trade tensions rise, India’s textile sector—long considered a backbone of its export economy—now stands at a critical inflection point. How New Delhi and industry players respond in the coming weeks could shape the future competitiveness of India’s apparel sector on the global stage.

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Read the full article here: Indian Exporters Hit Hard as U.S. Retailers Abruptly Halt Orders — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).