The tariff reduction could mean potential acceleration of nearshoring strategies, but manufacturers need clarity on timelines and industry level details
US President Donald Trump announced a trade deal with India that slashes tariffs on Indian imports from 50 percent to 18 percent, sparking immediate market relief but leaving sporting goods manufacturers uncertain about implementation details that could affect sourcing decisions.
The agreement announced Feb. 3 includes commitments from India to halt Russian oil purchases, lower trade barriers, and increase US imports to over $500 billion (€478 billion), though neither government has released formal documentation of terms. Indian trade officials clarified the $500 billion target extends across five years.
Sourcing implications unclear
For sporting goods brands evaluating alternatives to China, the tariff reduction may remove a significant barrier to Indian sourcing. However, the lack of detail on agricultural market access, automotive tariffs and Russian oil wind-down periods—and how the deal affects other industries—creates uncertainty for manufacturers planning sourcing shifts.
At 18 percent, US tariffs on Indian goods would sit slightly below Indonesia’s 19 percent rate and match Vietnam and Bangladesh at 20 percent. This narrowing spread reduces India’s historical tariff disadvantage against Southeast Asian alternatives.
Indian markets responded positively, Reuters reported. Shares posted their best single-day performance in nine months, while the rupee gained 1.36 percent to 90.2650 per dollar—its strongest one-day advance since December 2018.
Trump Tariffs Timeline
For a detailed chronology of how US tariffs on imports evolve and their economic impact, explore our comprehensive reporting.
