Donald Trump’s aggressive tariff escalation—doubling US import duties on Indian products from 50% to a threatened 100%—poses the most severe threat yet to India’s export backbone, especially for small manufacturers, major exporters, and Amazon sellers who rely on the US market for growth and scale.
The Tariff Impact: Can India’s Export Backbone Survive?
Beginning August 2025, US tariffs on Indian goods soared to 50%, with Trump now pushing for 100% duties in retaliation for India’s continued purchases of Russian oil. This sharp spike has already caused a drop in US-bound orders, higher landed costs, and eroded price competitiveness for Indian textiles, jewelry, carpets, home décor, and handicrafts—sectors where MSMEs dominate and Amazon sellers thrive.
- Small and Medium Enterprises (MSMEs), the bedrock of India’s export economy, now face shrinking margins and job losses as US buyers shift to alternative countries or domestic sources.
- Amazon FBA sellers and D2C brands are squeezed harder: on Amazon, profit margins are razor-thin and raising prices risks losing the Buy Box to global competitors who aren’t constrained by steep tariffs.
- Some major product categories—such as pharmaceuticals and electronics—remain less affected, but the cumulative economic blow could knock up to 0.5% off India’s GDP in the next year, analysts warn.
How Panoramic Sourcing Can Help Exporters and Amazon Sellers
Panoramic Sourcing specializes in guiding sellers and exporters through exactly these tariff shocks, offering solutions that help businesses survive and even thrive under adversity.
1. Smart Sourcing and Diversification
With tariffs on Chinese goods at historic highs, many US importers and Amazon brands are already shifting sourcing to India for textiles, decor, hardware, and private label products. Panoramic Sourcing manages this transition end-to-end, helping brands:
- Identify tariff-exempt or lower-duty product opportunities from India.
- Source from vetted, export-ready manufacturers across Indian hubs—ensuring reliability and compliance with US standards.
- Access eco-friendly, artisans-crafted, and market-specific products tailored to differentiated Amazon FBA strategies.
2. Cost Control, QC, and Faster Lead Times
For Amazon sellers fighting margin compression and inventory risk, Panoramic Sourcing:
- Negotiates factory-direct pricing to recover margin lost to tariffs.
- Oversees sampling, quality certification, and logistics, reducing costly delays and FBA rejections—a critical edge in volatile times.
3. Compliance, Product Classification & Tariff Workarounds
In a steep-tariff world, correct HS codes, creative bundling, and product adaptation can lower duty exposure. Panoramic Sourcing tracks US customs changes and works with exporters to:
- Classify products accurately for the lowest allowable tariff rates.
- Modify product specs or source “tariff-exempt” SKUs, optimizing Amazon catalog selections for risk and profitability.
4. Alternative Market Development
Relying only on US sales is riskier than ever. Panoramic Sourcing can help diversify into UK, Europe, and Middle East markets, using recent FTAs and changing trade routes to expand demand for Indian goods.
5. Support for Private Label and FBA Strategies
For brands wanting to pivot or shield themselves from trade shocks, Panoramic Sourcing provides:
- Custom product development for Amazon private labels.
- White-glove sourcing, factory audits, and shipping integration to maintain Buy Box competitiveness, even as costs rise.
Conclusion
The escalation of US tariffs from 50% to a potential 100% represents an unprecedented challenge to India’s export backbone. Critical sectors such as textiles, gems and jewelry, leather, and handicrafts—many of them dominated by MSMEs and Amazon sellers—now face rising costs, reduced competitiveness, and the risk of millions of livelihoods being disrupted. While India pursues diplomatic efforts and trade diversification, survival and growth in this environment demand strategic adaptation and strong partnerships.
This is where Panoramic Sourcing plays a vital role. Beyond just procurement, Panoramic Sourcing offers partnership, resilience, and agility—helping Indian exporters and Amazon sellers adjust their strategies, safeguard margins, and reach new buyers even as global trade volatility intensifies. With end-to-end sourcing solutions, quality control, compliance expertise, and access to alternative markets, Panoramic Sourcing provides exporters with the tools to withstand tariff shocks and unlock new opportunities.
FAQ
Q1: Why has the US increased tariffs on Indian goods from 50% to 100%?
A1: The tariff increase is mainly linked to India’s continued purchase of Russian crude oil, along with the Trump administration’s broader agenda to protect US economic interests and reshape global trade policies.
Q2: Which Indian export sectors are most affected by the tariffs?
A2: Textiles, gems and jewelry, leather, carpets, home décor, and handicrafts face the highest tariff burdens, with some sectors expecting shipment declines of up to 70%.
Q3: How will these tariffs impact small and medium enterprises (MSMEs) in India?
A3: MSMEs, which form the backbone of labor-intensive exports, are likely to face severe margin pressure, reduced orders, and risk of job losses due to increased costs and shifting buyers.
Q4: Can Indian Amazon sellers cope with these steep tariffs?
A4: Amazon sellers will face margin compression and competitive challenges on platforms like Amazon, but strategic sourcing, compliance, and alternative market development can help offset these pressures.
Q5: How can Panoramic Sourcing help exporters and Amazon sellers amid these tariffs?
A5: Panoramic Sourcing offers turnkey sourcing, quality control, tariff optimization through product classification, access to alternative global markets, and private-label product development tailored for FBA sellers and B2B importers.
Q6: Is there any upside or solution for India to withstand these tariff pressures?
A6: Through trade diplomacy, diversification of export markets, leveraging tariff exemptions, and partnering with sourcing experts like Panoramic Sourcing, India can mitigate the impact and build a more resilient export strategy.