Podcast Summary: The Human Cost of Trump’s Tariffs
The Business of Fashion Podcast
Date: November 5, 2025
Host: Sheena Butler-Young (A), with Brian Baskin (B)
Guest: Shiza Walid (C), BoF reporter

Episode Overview

This episode of The Business of Fashion’s “Debrief” examines the immediate and downstream effects of the United States’ August 2025 imposition of a 50% tariff on Indian apparel imports. The discussion centers on how a Washington trade decision reverberated across India’s garment sector, devastating factories and impacting millions of vulnerable workers. Reporter Shiza Walid shares insights from her on-the-ground reporting, drawing out the human, economic, and structural consequences of the tariff—and probes possible paths forward for brands, suppliers, and governments.

Key Discussion Points & Insights

1. The Policy Shift & Immediate Fallout

• Trigger of the Tariff
  • On August 27, 2025, the U.S. abruptly doubled its tariff on Indian apparel to 50% as a punitive response to India’s ongoing purchases of Russian crude oil.
  • Walid notes, “In India itself, they call it a 25% tariff and then the 25% Russian oil penalty, that’s how they separate it. And then the joint is a 50%.” (C, 01:30)
• Brand & Factory Reaction
  • Brands responded immediately by halting or reducing orders; factories either shut down or laid off workers en masse.
  • “For people living week to week, a month without wages can be the difference between coping and crisis.” (B, 00:47)
  • Small factories, especially in Tiruppur, were hit first and hardest, given their heavy U.S. reliance.

2. The Human Toll on Workers

• Loss of Security and Precarity
  • Many workers, mostly migrants, lost jobs or were put on indefinite furlough without clarity or support.
  • "They’re being told you can come in today and the next day you can’t. Whereas working in a factory, you have access to pension funds, you have provident fund access.” (C, 06:52)
• Comparison to Pandemic Disruption
  • Workers described the crisis as reminiscent of COVID: sudden, uncertain, and unsupported.
  • “It really is like a pandemic for them.” (A, 05:22)
  • No official unemployment benefits or severance are offered; workers fall back on less-secure, lower-paying daily wage labor in agriculture or construction.
• Information Gap
  • Most workers lacked any understanding of tariffs or reasons for the layoffs—furthering their sense of powerlessness.

3. Garment Industry Structure & Brand Responsibility

• Opaque, Fragmented Supply Chain
  • Contractors and subcontractors dominate the sector, making it difficult to identify the ultimate brand or to ensure accountability.
  • “They might actually have no idea which brand they’re making clothes for…that’s the nature of the industry.” (C, 08:40)
• Brand Responses
  • Brands have remained largely silent, often citing lack of visibility into their supply chains.
  • “It’s extraordinarily difficult to get data and direct causality from a particular brand.” (C, 08:40)
  • Brands’ historic willingness to cancel contracts abruptly—seen during COVID—has resurfaced, leaving workers vulnerable.

4. Systemic Fragility and Search for Alternatives

• Limited Ability to Diversify
  • Factories are exploring new markets (UK, EU, Russia) but none match the scale of U.S. demand.
  • “They said that Russia is an option…because of language barriers actually.” (C, 13:08)
• Temporary Buffering by Large Exporters
  • Some big exporters are absorbing part of the tariff—for now—but cannot sustain this loss.
  • “Margins are already wafer thin…they’re currently operating at a loss.” (C, 14:46)

5. Policy and Structural Solutions

• What Would Help?
  • Government aid: wage subsidies, emergency loans, or tax holidays.
  • Brand accountability: honoring existing contracts or at least maintaining some volume of orders.
  • A safety net: robust official unemployment benefits for workers, and better communication about available support.
  • “If major brands committed to upholding their existing contracts…that would prevent the panic of layoffs.” (C, 22:53)

Notable Quotes & Memorable Moments

• On Punitive Tariffs:
  • “It started to feel more like to them that they were being punished for something that they didn’t have any hand in.” (C, 02:56)
• On Worker Vulnerability:
  • “For them…it’s very vague. They don’t have a lot of clarity and they definitely don’t have idea of when things will go back to normal.” (C, 04:30)
• On Repeating Old Patterns:
  • “Brands said, well, there’s no more demand for our products, so we’re terminating our contracts effective immediately. Best of luck, workers.” (B, 10:12)
• On Hope for a Solution:
  • “Come December, if orders don’t renew for next year…we’re going to see even larger amount of layoffs happening.” (C, 21:50)
• On Reporting in Opaque Industries:
  • "It’s very difficult to get in touch with people on the ground…So the first set of people I approached were international labor organizations who work with local labor groups…” (C, 24:23)

Important Timestamps

• [01:30] Tariff context and U.S. motivations.
• [03:39] Factory layoffs and worker conditions.
• [05:38] Parallels to the COVID-19 pandemic.
• [06:52] The lived reality for displaced garment workers.
• [08:40] Difficulty tracking brand responsibility.
• [10:32] Repeating the COVID contract cancellations pattern.
• [12:12] Subcontracting and disconnected supply chains.
• [13:08] Efforts to diversify away from U.S. buyers.
• [14:46] (Un)sustainability of exporters absorbing tariffs.
• [19:00] Diplomatic negotiations and future outlook.
• [21:50] Red flags for worse to come if orders don’t renew.
• [22:53] Policy recommendations for worker support.
• [24:23] Behind-the-scenes investigative reporting.

Tone and Language

Throughout the episode, the tone is compassionate, direct, and deeply informed by the lived experience of workers and the sobering context of global supply chains. Each speaker maintains a balance between analytical clarity and human empathy.

Conclusion

The episode paints a comprehensive, human-centered image of how high-stakes trade policy can devastate the worker base thousands of miles away from the negotiating table. It calls for a mix of brand accountability, government action, and structural reforms to protect those most vulnerable in our globalized economy.

For further details, read Shiza Walid’s article: “India’s Garment Workers Are Paying the Price for Trump’s Tariffs” at businessoffashion.com