The Global Waiting Game on U.S. Tariffs
Trade partners delay action, betting that early concessions won’t secure better terms
TARIFF TRACKING
/ Tariff relief improves competitiveness, but political and market risks remain
Indian manufacturers have been on a tariff rollercoaster over the past 18 months.
In 2024, India briefly became the ‘flavor of the month’ on the sourcing menu as brands looked to diversify production. That momentum reversed in 2025, when Indian exports were hit first with 25% US reciprocal tariffs, followed by an additional 25% punitive tariff.
New Delhi has been actively seeking a new deal. But negotiations with Washington appeared to stall – until suddenly the issue resurfaced.
On February 2, US President Donald Trump announced the removal of the additional 25% tariff, citing India’s reduction in purchases of Russian oil. He also said that reciprocal tariffs would be lowered to 18% placing India marginally below other major Asian apparel suppliers, which currently face tariffs in the 19%–20% range.
The unexpected deal is seen as revitalizing US-India trade, however there’s a lot more that needs to be worked out before suppliers or buyers can be certain that trade flows will truly be restored to previous levels.
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