Q: How have U.S. tariffs evolved, and what does that mean for your supply chain? 

A: As of August 13, 2025, tariffs on Indian goods have jumped to 50% effective August 27 (25% base + 25% penalty), the U.S.–China tariff truce has been extended another 90 days, and importers are front-loading shipments—especially from China—to avoid future spikes amid legal uncertainty and shifting sector rules.

What’s Changed—and Why It Matters to You 

How have tariffs on Indian imports escalated? 

• As of August 6, another 25% tariff is added, bringing total duties to 50%, effective August 27, with transit exemptions until September 17.

• This hits diverse sectors—garments, diamond polishing, shrimp, home textiles, solar panels, agrochemicals, and more—threatening export viability.

• Analysts warn this may slash India’s apparel exports by up to 70% and automotive components by 15–20%.

What’s happening with U.S.–China trade? 

• The previously scheduled tariff hike has been extended another 90 days until November 10.

• The pause prevented tariffs from escalating into the triple digits—45% for U.S. goods, 125% for Chinese, etc.

• However, U.S. exporters—especially soybean suppliers—are already losing ground, as Chinese buyers source from Brazil.

How are import flows responding? 

• U.S. container imports peaked in July, indicating frontloaded shipments ahead of projected tariff escalations.

Are the tariffs legally secure? 

• Federal courts (CIT) have already ruled Trump’s tariffs under IEEPA illegal, but appeals are pending, so enforcement continues for now.

What Should Importers Do Now? 

• Reassess sourcing from India—rising tariffs may severely impact costs in apparel, auto parts, and specialty goods. 

• Frontload China-origin shipments where possible, taking advantage of the truce extension through November. 

• Track legal developments—if IEEPA-based tariffs are overturned, refunds or reversals may follow. 

• Reevaluate U.S. sourcing or reshoring—tariff pressure and court risks make domestic options more appealing. 

• Adjust inventory timing, especially for seasonal goods, as seen with retailers preshipping in July. 

• Consult Dedola’s Tariff Classification Guide and ocean/air freight services for optimized routing and documentation. 

Key Takeaways for Importers 

• India tariffs now at 50%—prepare for sharp cost jumps and possible supply shifts. 

• China truce gives breathing room—plan shipments with November in view. 

• Legal outcome remains uncertain—maintain flexibility in your plans. 

• Import patterns are frontloaded—consider capacity impacts and storage. 

• Diversification is essential—explore alternative sourcing and shipping modes. 

FAQ 

Q: When do India’s new tariffs take effect, and is there a grace period? 
A: They take effect August 27, with exemptions for goods already in transit entering by September 17. Dedola can help with transit status and entry strategies.

Q: Should I expect tariffs on Chinese goods later this year? 
A: Currently deferred until November 10. Dedola can advise on shipment pacing and documentation to leverage the delay.

Q: Are tariffs legally fragile right now? 
A: Yes—courts have flagged IEEPA-based tariffs as unconstitutional, but enforcement continues during appeals. Dedola will monitor for refund eligibility or reversals.

Q: How should I manage imports under these conditions? 
A: Use our Ocean Freight and Air Freight services to optimize timing, select exempt zones, and align with tariff rules. We’ll help map cost-efficient routes. 

Q: What can I do about India-origin costs? 
A: Explore sourcing diversification, supply chain restructuring, or transitioning through U.S. domestic manufacturing, guided by our tariff advisory services.