【Gurugram, In】Pearl Global Sees Limited Risk from US Tariff, Calls It Negotiation Pressure

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Editor’s Note

Pearl Global Industries’ Managing Director expects limited business impact from proposed U.S. tariff changes, viewing them as part of negotiation tactics.

Limited Business Impact Expected

Pallab Banerjee, Managing Director and Group President of Pearl Global Industries, said the proposed tariff changes by US President Donald Trump are not likely to have a major effect on the company’s business.

“It’s a little bit of a disappointment… but I’m sure this is part of his negotiation tactics,” he said. “India has to negotiate.”

Banerjee acknowledged the recent statements have caused some concern in the industry, but downplayed the immediate risk for Pearl Global.

Revenue Exposure and Customer Response

The Gurugram-based company exports clothing to several countries. About 15% of its revenue comes from exports to the US.

“So our customers will push us to move to other countries,” he said, but added, “I don’t see a big impact at this point.”
Tariff Structure and Changes

He explained that previously, exports from countries like India, Indonesia, and Vietnam were subject to the Most Favoured Nation (MFN) tariffs under WTO rules – typically 12% to 19% for cotton garments, 26% for synthetics, and slightly lower for natural fibres like linen.

“After April 2, a 10% baseline was added to these tariffs. Now it seems this 10% will be replaced by a 25% tariff,” he said.

For countries like Indonesia and Vietnam, updated tariffs have already been declared at 19% and 20% respectively, while Bangladesh’s rate is expected soon. Pearl Global also exports from Guatemala, where the rate remains flat at 10%.

Tariff Payment and Disadvantage

Banerjee clarified that the tariffs are paid by the customers in the destination countries, not by the exporters.

“But yes, it’s a disadvantage,” he said.
Difficult Timing for Indian Exporters

He pointed out that the timing is particularly difficult for Indian exporters. India is very strong in the spring-summer season of Western countries. This is the time these orders are getting booked, Banerjee said.

“A lot of customers who were placing business last week of July, they pushed it out to the first week of August.”

The company has a current market capitalisation of ₹6,966.96 crore.

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⏰ Published on: July 31, 2025