Trump's reciprocal tariffs: Big Four face flurry of trade playbook queries

Earlier this week, one of the Big Four firms organised a webinar on the ‘Liberation Day’ tariffs. While usual attendance for such events is around 100–200, an unexpected 800 people joined the call.

 

At another Big Four firm, company enquiries related to the reciprocal tariffs rose from one or two a week in March to over a dozen a week in April. The consulting firm now expects what was earlier a weekly occurrence to become a daily routine. 

“We think this is a pivotal moment, and there will be a major shift in focus on trade as a consulting specialisation. It marks an institutional change, and so it is likely to last over the next decade. This will be a decade of transformation, not just a year of disruption,” said Himanshu Tewari, partner — trade and Customs, KPMG India.

  The top consulting firms expect the current pace of activity to intensify in the coming days. With a 90-day pause on tariffs for most countries, firms have so far been focused on impact analysis. The reciprocal tariffs were scheduled to take effect from April 9.

  “We are working closely with several clients as they prepare for the various scenarios unfolding amid this uncertainty. Many are facing tough decisions as they gather more information and monitor how other countries respond, along with the outcomes of ongoing negotiations,” said Sameer Gupta, national tax leader, EY India.

  Ramping up capabilities

  As the tariff and trade space heats up, Deloitte has brought together its specialists across three verticals — global tax advisory, indirect tax, and sectoral supply chain teams. The aim is to provide solutions within two to three weeks, backed by clear and actionable insights.

  At another firm, a four-member team expanded to 15 within the first three days of the tariff announcement and is expected to  grow to 20–25 members in the coming days.

  Most Big Four firms are looking to double the capacity of their trade verticals in a short span of time. 

“Increasingly, professionals with international trade expertise, a background in Customs duties, and a strong grasp of supply chains will be needed,” said Akash Srivastava, partner, Deloitte India.

  While many firms are reallocating staff from other teams to meet this growing demand, they are also hiring and prioritising training for current employees. “Passing on the knowledge and wisdom we’ve built over the past three decades to the next generation — and contextualising it to today’s environment — is our responsibility… We have a very hands-on, on-the-job and classroom-style training approach,” Tewari said.

  Advising and advocacy

  Companies, especially from the gems and jewellery and automotive sectors, have been approaching consulting firms to understand the implications of the tariffs and their available options.

  Tewari said that building awareness about the scope and implications of this issue is the first level of a conversation starting point.  “We are still some distance away from entering the actual implementation stage,” he said.

  From discussions on pricing strategy — whether to pass on the cost increase to customers or vendors or absorb it — to reworking supply chains, experts say all options are on the table.

  However, the role of consulting firms now goes beyond advice, as advocacy is taking on added importance. Experts believe businesses must engage with the government and supply the right data and insights to help in India’s bilateral discussions with the US. 

“The impact of the tariff announcements on advisory work is tremendous. This is just the first of many events that will shape global trade, and for Indian exporters to stay competitive beyond labour cost advantages, they must rethink their long-term strategies,” Srivastava said.