Contingency plans in play for apparel, drug, tyre cos

Firms tweak business strategies to mitigate risk emanating from 10% US tariffs on all imports

- Ayaan Kartik & Nehal Chaliawala

Indian exporters of apparel, automotive parts, pharmaceuticals and tyres—with significant shipments to the US—are preparing contingency plans or revising their business strategies to mitigate the business risk from the imposition of tariffs.

US President Donald Trump's administration has imposed a 10% universal tariff on all imports from every country, including India.

Gokaldas Exports Ltd, a listed garments exporter, will focus on expanding its business in Europe because tariffs have hurt business with its main export market—the US.

"Since there is a lot of tariff uncertainty, we are pivoting to Europe. The idea is not to reduce our US business in absolute terms, but for incremental business we will focus on Europe including the UK," said Sivaramakrishnan Ganapathi, managing director of Gokaldas Exports.

Margins of apparel exporters including Gokaldas have come under pressure following the tariff levy. US retailers have been unable to pass on the increased cost to consumers and are pushing for their suppliers to share the burden, Ganapathi said.

"In the short term, we may also have to bear some of that cost just to keep up the relationships," he said.

Gokaldas got about three-fourths of its ₹3,864 crore FY25 revenue from the US.