Businesses redeploy manpower to meet August 27 deadline amid tariff surge

New Delhi/Mumbai, August 8, 2025 –Indian exporters are rushing to send consignments to the US before a steep tariff hike later this month. The urgency follows US President Donald Trump’s announcement that the 25% reciprocal tariff on Indian goods will double to 50% from August 27 under “secondary sanctions.” The move has prompted businesses to advance shipment schedules, redeploy manpower, and negotiate cost-sharing arrangements with US buyers.

Israr Ahmed, Director of Farida Group, said his company is expediting shipments of four weeks’ goods within two weeks. “We are advancing shipments for four weeks instead of the usual fortnight,” he explained. Gurgaon-based Richa Global Exports is also working to send a large share of Fall-Winter orders before the hike.

Exporters note that advancing shipments is essential to minimize damage from the tariff increase. Virender Uppal, head of Richa Global Exports, said the strategy ensures raw material is used well and losses are minimized. However, he admitted that with low margins, “we will have to take a hit” to absorb part of the cost. The situation has also forced companies to shift manpower from other projects to meet the urgent demands of US buyers.

According to trade associations, many exporters are splitting the increased costs with US buyers. Sellers usually offer a 7–8% discount by cutting margins, with the rest passed to US consumers. However, Tirupur Exporters’ Association President Raja M Shanmugam warned that low-margin sectors like apparel may find it unfeasible to export if tariffs remain high.

Sudhir Sekhri, Chairman of the Apparel Export Promotion Council (AEPC), called the hike a “huge setback” for India’s labour-intensive apparel sector. While the industry is attempting to absorb the shock, many smaller businesses lack the bargaining power to pass costs to buyers. For them, the tariff escalation poses serious risks to profitability and competitiveness in the US market.

Since early April, Indian exporters have faced tariff-related challenges that have already cut into margins. The 50% hike is likely to strain trade ties, forcing some companies to scale back or quit the US market. Economists warn that sustained high tariffs could disrupt India’s export growth, especially in textiles, footwear, and apparel.

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