Trade Advisory
01 June 2025 • 4 min read
Tariff Pause: How Indian Traders Can Take Advantage
The 2025 global tariff pause offers Indian exporters a rare opportunity to reduce duties on key exports like textiles, pharma, and machinery. This blog shows how to combine those savings with smarter logistics planning using OS Planning to unlock higher margins and win long-term contracts.
Why This Matters Now
Global trade tensions, regional conflicts, and climate-driven disruptions have made the world rethink tariff strategies. In 2025, major economies including the US and EU are instituting a temporary “tariff pause” — halting new trade barriers and, in some cases, suspending existing duties for key categories.
For Indian traders, this isn’t just a headline. It’s a golden window.
What is the “Tariff Pause”?
- No new duties on key import/export categories across electronics, textiles, pharmaceuticals, and machinery.
- Temporary relaxation of retaliatory tariffs, especially between US–India and EU–Asia trade lanes.
- Several governments are offering expedited clearance and reduced scrutiny for select SKUs during this period.
Who Benefits in India?
- Exporters of textiles and garments to the EU and US — duty suspensions could improve margin by 8–10%.
- SMEs in pharma and chemical exports — where previously high tariff caps are being paused.
- Machinery & engineering goods exporters — reduced duties mean faster purchasing cycles abroad.
How to Take Advantage
- Identify HS Codes that fall under suspended or reduced tariffs via your EPC or DGFT portal.
- Audit your top 10 lanes for affected categories and create a pricing advantage model.
- Use OS Planning to rapidly simulate revised landed costs across port pairs and carriers.
- Refactor export contracts to capitalize on the margin bump and lock in longer-term deals.
Example: Textile Exporter from Tiruppur
A Tiruppur-based exporter shipping to Germany usually pays a 9.6% duty. Under the EU’s tariff pause, this is temporarily 0%. With OS Planning, they recalculated total landed cost and passed a 5% discount to buyers — helping them win a 6-month supply contract with a large German retailer.
Don’t Let Detention & Demurrage Eat Into Your Gains
Remember — tariff savings are just one part. If you’re delayed at customs or terminal handling, you’ll lose that margin to charges.
- OS Planning helps Indian exporters track port schedules, container dwell times, and local charge estimates.
- Plan better and avoid the “late gate-in” penalties that erase your duty advantage.
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Start your 7-day free trial of OS Planning today and use the Tariff Pause window to win global contracts while margins are in your favor.