Trump’s Tariffs Spark Panic Among U.S. Retailers: Pearl Global Caught in the Crossfire

 

Ever since former President Donald Trump’s latest tariff salvo on Indian goods, the ripple effect on the global supply chain has been immediate and intense. Indian garment exporter Pearl Global, a key supplier to American retailers like Gap and Kohl’s, is facing mounting pressure from its U.S. clients — many of whom are now making frantic midnight calls, demanding a choice: either absorb the tariff costs or shift production elsewhere.

The Trump-led tariff escalation, aimed at reducing trade dependence on countries like India and re-shoring U.S. manufacturing, has left companies like Pearl Global scrambling. To safeguard relationships and contracts, Pearl Global has offered an immediate solution — shifting production to its alternative manufacturing hubs in Bangladesh, Indonesia, Vietnam, and Guatemala. These countries are currently not affected by the U.S. tariff decision and offer similar cost-effective production capabilities.

The move highlights how geopolitics and policy shifts can disrupt even the most established trade relationships. For India, it’s a wake-up call to reassess its global trade strategy and invest in diversifying markets. For American retailers, it’s a test of loyalty versus logistics — as they must decide between long-standing Indian partners and bottom-line concerns.

At New India Abroad, we continue to monitor how Trump’s trade policies are reshaping the economic landscape for Indian exporters and the diaspora-led businesses dependent on stable U.S.-India relations. With the global supply chain hanging in the balance, Pearl Global’s response may become a blueprint for others navigating a more volatile trade environment.