President Trump has announced plans to reduce tariffs on Indian-origin goods from 25% to 18%, on Truth Social. While details are still emerging, the change has different implications for shipments already moving through the supply chain versus new bookings.
Shipments Currently in Transit
Shipments already in transit are expected to be assessed at the 25% rate upon arrival, unless US Customs and Border Protection (CBP) issues specific guidance creating a transition or grace period. At this time, no formal CBP instructions on in-transit cargo have been released.
New Bookings and Future Shipments
For new shipments and upcoming bookings, the expectation is more straightforward: Indian-origin goods entered into the US after the change takes effect will be subject to the lower 18% tariff rate. Importers may see reduced duty exposure compared to prior weeks, depending on product classification and entry timing.
Importers should closely monitor CBP communications for clarification on effective dates and any transitional relief for goods already on the water. Reviewing landed cost calculations and future contracts may also be prudent as the lower tariff rate takes hold.
We will continue to track developments and provide updates as additional implementation details become available.