What began with an additional 25% duty on most Indian goods took an unexpected turn when the US Supreme Court struck down the reciprocal tariff framework. Within hours, a fresh 10% levy came into force, only to be revised upward to 15% by Saturday evening.
For many exporters, the rapid shifts have reinforced a growing belief that volatility in US trade policy is becoming routine.
Pallab Banerjee, Managing Director of Pearl Global, told TOI that companies had spent the past three quarters offering steep discounts to retain American buyers.
“Indian exporters were on tenterhooks for the last three quarters as we were offering very heavy discounts to retain US business. We knew our govt was working on a bilateral trade deal. The US economy’s resilience is the only help that mitigated these effects, but one thing is very clear, that inconsistency in US tariff policies is new normal for now,” he said.
Discounts, deals and margin Pressures
Over the last 10 months, exporters have faced multiple revisions in tariff rates. According to the TOI report, when duties had briefly surged to 50%, Indian suppliers absorbed the shock by offering discounts of 15–18%. After a trade deal announcement on February 2, discounts fell to as low as 0–3%, bringing temporary relief.
Now, with tariffs expected to remain in place for 150 days, exporters fear US buyers may demand a shared burden that would potentially push discounts up to 5%.
Speaking with TOI, HKL Magu, Managing Director of Jyoti Apparels, described the mood as cautious.
“The 10% tariffs were good, we were all smiling, but then it changed within a few hours. This is temporary. We will get to know what happens when offices open (in the US on Monday),” he said.
Meanwhile, Banerjee added that constant recalculations are becoming the norm for retailers and brands, who must repeatedly renegotiate contracts to reflect new cost realities.
“The frequent tariff changes impact businesses, particularly retailers and brands, who will continuously need to recalibrate their cost calculations and negotiate or renegotiate with suppliers,” he said.
A level playing field & the China factor
Some sectors, particularly footwear and leather, see merit in uniform tariff rates replacing product-specific duties.
Israr Ahmed of Farida Group said a stable 10–15% range offers a more predictable framework. “”It is good. Coming from a higher duty to lower will not make much difference.”
Florence Shoe Company chairman Aqueel Panaruna echoed that view, saying the court ruling has restored some visibility for global sourcing decisions.
“Recent clarity provided by the US Supreme Court ruling has improved visibility for global footwear and leather sourcing, with effective duties now expected to fall in the 10-15% range, a more favourable outcome than earlier. The ruling applies uniformly across Asian sourcing countries, helping restore predictability for US brands,” Panaruna told the news outlet.
Yet, exporters remain wary of China’s renewed competitiveness.
With tariffs on Chinese goods reportedly easing to less than half their earlier levels, Beijing could regain ground in the US market – a development that may once again reshape trade dynamics in Asia.