How Are Trump Tariffs Affecting South Asian Owned Businesses?

DATE
28 May 2025
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Business, Uncategorized

How Are Trump Tariffs Affecting South Asian Owned Businesses?

The stock market is more unpredictable than my situationship, egg prices are off the charts, and a recession is looming– mostly due to the Trump Tariffs. Introduced in early 2025, the tariffs are a cornerstone of President Trump’s push to boost American manufacturing, reduce foreign dependence, and address what he calls unfair trade practices. That’s translated into steep import taxes — some over 100%, even reaching 300% — and the rollback of key trade benefits for countries like China, India, and Canada.

These tariffs are making it impossible for businesses to keep up with the costs of exports, disrupted supply chains, and shifting demands. In fact, Osama Shahid the founder of Osami, a South Asian inspired menswear brand, took to Tik Tok to share that the 29% tariff levied in Pakistan along with other manufacturing hubs is compelling him to rework his brand strategy, create a resilient supply chain, and meet higher upfront costs and reduced margins.

@osamiofficial brand owner yap session: trump tariffs as a small independent brand don’t deport me us gov it’s just bts of my life rn #osami #smallbusiness #fashionbrand #southasianfashion #madeinpakistan #menswear #losangeles #slowfashion #contemporarymenswear #tariffs #supplychain #trumptariffs #brandowner ♬ original sound - Osami

However, for some brands, tariffs are posing a marketing opportunity. For COMFRT, a loungewear brand, the tariffs catalyzed a best-sellers sale. Maybe it’s just me, but the math isn’t mathing here… 

 

To get some more on the ground insight, we spoke to our client, Modern Mangal, on how the tariffs are impacting their work and lives:

“Tariff fluctuations and rising gold prices are impacting our pricing and supply chain, especially when it comes to packaging sourced from China. These fluctuations have led to unpredictable costs, which affect our overall pricing strategy. The rising cost of gold, in particular, is increasing our production expenses and putting pressure on our profit margins, even as we work to maintain competitive pricing.

At the same time, sourcing challenges in China are prompting us to seek alternative suppliers, including local vendors and manufacturers in India. We’re actively exploring local production options to reduce our dependency on international suppliers and to stabilize our supply chain. Despite these increased costs and ongoing efforts to adapt, we’ve managed to keep pricing stable for our customers, which is essential to maintaining their trust and loyalty to the brand” Modern Mangal shares.

If you are a South Asian owned brand who has been impacted by the tariffs, let us know! We’d love to share your story on our blog.