Tariff Shock: India → US

Tariff Shock: India → US | What changes this week

The US has raised tariffs on many Indian goods. In some cases the total duty now touches 50%.
It kicked in this week. If you sell physical products to the US, this matters today.

What changed ?
-> Extra duty added on several product lines
-> Effective rates on some categories now near 50%
-> Services are not targeted

Who feels it first?
-> Higher risk now: textiles and apparel, gems and jewellery, leather, furniture, seafood
-> Mixed exposure: electronics and pharma. Do not assume safe. Check your exact HS code

What to do in the next 72 hours?
1. Get the facts: ask your broker for the new duty on each HS code. Re-quote with landed cost.

2. Triage SKUs: pause thin-margin items to the US. Move those pallets to buyers in the Middle East, EU, or Africa.

3. Value over volume: push higher-ticket variants where a price lift can stick even after duty.

4. Lock the pipes: hedge FX, reset freight terms for Q3 and Q4, protect cash conversion.

5. Talk to your bank: request a short working-capital top up if needed.

Why this matters ?

- The US is India's largest goods market. A higher duty changes pricing, buyers, and product mix.

- Short term: a stress test.

- Long term: a reset. Diversify buyers. Upgrade SKUs. Get precise with landed costs.

✍🏻 Mantra Joshi

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