Strategic Analysis to Mitigate the Tariff Risks in E-Commerce Industries in Context to

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Recent developments, such as the United States imposing a 10% universal tariff on imports and imposing higher rates on major trading partners, have introduced significant market uncertainty and supply chain disruptions. Companies must deal with a complex web of tariffs, with some Chinese goods facing rates as high as 145%. Effective global tariff risk mitigation strategies are essential to protect profit margins, maintain competitive pricing, and ensure supply chain resilience in this challenging landscape. The United States Trade Representative (USTR) source indicates that although the Indian government has pursued ongoing economic reform efforts, US exporters continue to face significant tariff and non-tariff barriers that hinder imports of US products into India. The World Trade Organization estimates that the most favored nation import duty imposed on India is 13.8 percent, the highest among any major economy. Tariffs WTO Moratorium E-commerce Strategic Mitigation Cross-border Trade Figures Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Introduction This paper provides a brief study on analysis to mitigate the tariff risk in e-commerce industries in India. Before analysis to mitigate tariff risks, we know about the tariff. E-commerce improves productivity and expands options by means of cost reductions, increased competitiveness, and improved organization of the production process (Vancauteren et al., 2011 ). For the purposes of this study, we define tariffs as taxes that governments impose on imported or exported goods. Most often, governments apply tariffs to imported goods, but they will sometimes impose them on exports, too—for example, to discourage companies from selling strategically important products to foreign buyers. A tariff is calculated as a percentage of the value of the goods and is, therefore, known as an ad valorem tax. Tariffs imposed by countries around the world to protect domestic industries and respond to unfair foreign trade practices create challenges for any company doing business across international borders. Those businesses may have to raise domestic prices as tariffs increase the cost of imported raw materials, parts, and finished goods, and export sales may be affected if foreign countries impose retaliatory tariffs of their own. Efforts have been made to actively advance the sector as outlined in the Union Budget (2024-25); the foreign trade policy of 2023 also includes measures to support e-commerce exports (DGFT, 2023). However, by using effective tariff mitigation strategies, businesses engaged in international trade can continue to produce distinctive, high-quality products, develop new markets, and potentially increase their profits. Previous research has primarily highlighted manufacturing exports and large multinational corporations. Few studies have investigated e-commerce platforms, small and medium-sized enterprises (SMEs), and cross-border online sellers. There is a lack of thorough analysis regarding how frequent revisions of tariffs, customs regulations, and trade policies contribute to uncertainty for e-commerce businesses. Additionally, there are limited recommendations for policy-driven strategies aimed at risk mitigation. The Indian e-commerce industry, projected to reach a market valuation of over $ 200 billion by 2026, stands at a crossroads. While the sector has thrived under a "tariff-free" digital environment, the expiration of the WTO Moratorium on Customs Duties on Electronic Transmissions (scheduled for March 31, 2026) introduces a paradigm shift. For a developing country like India, which is both a massive consumer of digital imports and an emerging exporter of digital services, the reintroduction of tariffs poses a double-edged risk to operational costs and global competitiveness. The majority of studies focus on tariff risks associated with traditional trade, rather than specifically addressing those within e-commerce industries. There is a limited amount of research that presents that combines tariff risks with strategic management approaches in the realm of digital commerce. Current studies predominantly concentrate on developed economies. There is a notable absence of India-specific empirical research that tackles tariff risks in e-commerce from the perspective of a developing country. The America First Trade Policy memorandum calls for a comprehensive review of U.S. trade policy, trade practices, and trade imbalances. The memorandum outlines trade and economic policy recommendations to address priority areas of trade, several of which may have important implications for companies and their supply chains. However, the full impacts of the tariff plan and global trade policy remain to be seen. While some policy changes have already taken effect, U.S. trade policy and the economic landscape will continue to see developments. Businesses must be prepared to act quickly and align business strategies as policies update and evolve. Our global trade and supply chain management experts are monitoring developments to offer tailored guidance and scenario planning for organizations across industries. Let us help you stay informed and navigate the evolving trade, policy, and economic landscape. Track the latest and stay ahead with insights, alerts, webinars, and guidance from our experts. Risk Identification: The "Tariff Shock" of 2026 Tariff risks in India’s e-commerce landscape are categorized into three primary dimensions: Digital Transmission Duties: The potential end of the WTO moratorium allows member nations to impose duties on "bits and bytes"—digitally delivered software, music, movies, and AI models. Reciprocal Trade Barriers: As India explores digital taxes (like the Equalization Levy), trading partners (notably the U.S.) have responded with reciprocal tariffs on Indian physical exports (textiles, gems, and electronics), affecting e-commerce sellers who export via "E-commerce Export Hubs." De Minimis Threshold Changes: Global shifts to lower de minimis values (duty-free limits for small parcels) threaten the "drop shipping" and cross-border B2C models that many Indian MSMEs rely on. Literature Review Prasad (2025) says that US tariffs on Indian goods present a meaningful risk to certain export-oriented sectors and pose challenges for job-rich manufacturing segments; the aggregate macroeconomic impact for India is likely to remain manageable in the short term—with GDP growth drag estimated at somewhere between ~ 0.1 and ~ 0.6 percentage points based on current studies. India’s relatively modest export share to the US, large domestic market orientation, and export diversification potential serve as buffers. Nevertheless, the real concern lies in the medium to long term: persistent tariffs can erode competitiveness, shift global supply chains away from India, inflict structural damage in labor-intensive sectors, and raise the stakes for export policy. The policy response thus becomes pivotal—timely exporter support, market diversification, value-addition, and domestic demand strengthening will determine whether India turns this challenge into an impetus for upgrading its manufacturing and export ecosystem. Gupta ( 2025 ) says that tariff wars, particularly those initiated by the US on countries, especially China and other countries like Canada, Mexico, the EU, and India, have highly affected the global trade landscape. It led to disrupted supply chains, inflationary pressures, and strategic trade realignments. While these tensions created economic challenges, they also opened long-term opportunities for emerging economies like India. Due to its developing manufacturing capacity and demographic advantage, India stands as a strategic junction in global supply chain diversification. However, to exploit the opportunities, India must address its structural weakness and promote self-reliance in key sectors. Hence, a strong policy framework, investment in infrastructure development, and skilled professionals like CAs are essential to navigate these global uncertainties. According to Pal and Ajmani ( 2025 ), India and the United States share a strong bilateral trade relationship. The United States is one of few countries with which India has a positive trade balance. Therefore, any shift in US tariff policy will significantly impact the Indian economy. In this note, we presented results from a single-country economy-wide model that was used to assess the impact of bilateral tariff policy on the Indian economy. The following policy insights emerged. Goldar ( 2005 ) said that Indian industry has been impacted by India’s commitments on tariffs and quantitative restrictions under the WTO. It has been argued that while a large reduction has been made in the level of tariff between 1991 and 2004, this cannot be considered an outcome of India’s commitments under the WTO since the tariff reforms have been largely independent of India’s commitments. The tariff reform did have a significant effect on Indian industry, but these effects cannot be attributed to India’s commitments. Objectives To analyze the tariff-related risks encountered by e-commerce industries in India and to assess strategic measures for alleviating their effects on industry performance. To examine the role of technical and compliance strategies in minimizing tariff-related uncertainties. To propose a strategic framework for mitigating tariff risks within the Indian e-commerce sector. Conceptual framework Model: Tariff Risk Factors(Digital Tariffs, Reciprocal Tariffs,Policy Uncertainty, De Minimis Changes) Research Design The researcher adopted a descriptive research design. This design is most suitable because the main goal is to describe the existing strategies and observed impacts of the trade shifts in 2025-26 without necessarily establishing a causal link. The researcher adopted two approaches, i.e, Approach: A mixed-methods approach, combining quantitative data (trade volumes, tariff rates) with qualitative insights (expert interviews, strategic frameworks). Time Horizon: Cross-sectional, focusing specifically on the period starting October 2025 through the current fiscal year (2026). Data Collection Methods To capture the rapid changes in the Indian e-commerce sector, the study will utilize secondary data sources. Government Reports: Analyzing the Union Budget 2026 (which introduced customs duty reliefs for D2C exporters) and reports from the Directorate General of Foreign Trade (DGFT). Trade Databases: Sourcing data from the Ministry of Commerce & Industry’s Export-Import Data Bank to track shifts in export destinations (e.g., pivot from the US to EFTA or UAE). Industry Whitepapers: Utilizing reports from logistics firms (e.g., I Think Logistics, Shiprocket) and consulting firms (EY, Deloitte) regarding "Delivered Duty Paid" (DDP) adoption and "Tariff Engineering." SWOT Analysis in Indian economy Strength • Competitive IT, Pharma, Textiles and Service sector. • Strategic trade location and young workforce. • Growing manufacturing base due to schemes like make in India, Aatmanirbhar Bharat, Vikshit Bharat etc. • Increase in FDI due to China + 1 strategy. Weakness • Dependency on imports for electronics and industrial components. • Logistics and infrastructure challenges as compared to China. • Trade Deficits with US and China. Opportunities • Potential substitute to China for low cost manufacturing. • Multinational companies are attracted which are seeking diversification. • Skill development and diversification in exports. • Bilateral Foreign Trade Agreements with EU, UK and Southeast Asia. Threats • U.S. tariffs on Indian goods may make it uncompetitive in the US markets. • Inflation due to costlier raw material imports • Increase in cost of producing due to global tariff on raw materials and spare parts. • Shipping and export routes affected due to geopolitical tensions. Source Author’s own work Result & Discussion The research focuses on the assessment on developing economies and its impact in India. Impact Assessment on Developing Economies (India Focus) Sector Nature of Risk Impact Severity SaaS& Software Increased cost of imported enterprise tools. High B2C Retail (Cross-border) Reduced price competitiveness in U.S./EU markets. Medium-High Entertainment/Media Higher licensing costs for streaming and gaming. Medium Logistics/Last-Mile Increased compliance and "red tape" costs at customs. High Source Author’s own work US Tariff Impact in Indian Economy As per the 1999 guidelines of the Organization for Economic Cooperation and Development (OECD), e-commerce encompasses online business activities, which include communications such as advertising and marketing, as well as transactions that involve ordering, invoicing, and payments (OECD, 2000 ). The US has imposed tariffs of up to 50% on Indian goods, negatively impacting India's exports. Export growth rates, particularly in traditional sectors such as textiles, gems and jewelry, and leather goods, have declined significantly. Key Points India's exports to the US fell by 15% in September 2025, compared to 20% in April-August 2025. Textiles and readymade garments exports recorded an annual decline of 10.1%. Cotton yarn and fabric exports declined by 11.7%. Gems and jewelry growth slowed to a mere 0.4%. In contrast, electronic goods exports grew by 50.5%, particularly sharply in smartphone exports. Trump's tariff policy has begun to impact shrimp prices in the US market, with prices rising by 15–20%. India's share of supplies in the US shrimp market is approximately 45%, worth approximately $ 6 billion annually. Current Tariff rates imposed by US The data is given in table below; Country Reciprocal tariff rate announced April 2, 2025 Status of reciprocal tariff Current tariff rate Australia 10% Active as of April 5, 2025 10% Bangladesh 37% Lowered to 20% 20% Cambodia 49% Lowered to 19% 19% Canada 25% for most goods; 10% for energy and potash; 0% for USMCA-compliant goods 25% tariff increased to 35% on August 1, 2025 35% (Read our blog for updates and details on Canada tariffs) China 34%, increased to 84% then 125%, then decreased to 10% 10%; set to increase on November 10, 2026 30%+ (Read our blog for updates and details on China tariffs) EU 20% Lowered to 15% 15% India 26% Lowered to 25%; increased to 50% on August 27, 2025 50% Indonesia 32% Lowered to 19% 19% Israel 17% Lowered to 15% 15% Japan 24% Lowered to 15% 15% Mexico 25% for most goods; 10% for energy and potash; 0% for USMCA-compliant goods Set to increase to 30% in October 2025 25% Pakistan 29% Lowered to 19% 19% South Korea 25% Lowered to 15% 15% Switzerland 31% Increased to 39% 39% Taiwan 32% Lowered to 20% 20% Thailand 36% Lowered to 19% 19% UK 10% Active as of April 5, 2025 10% Vietnam 46% Lowered to 20% 20% Source Ministry of Commerce Current tariff rates imposed by US The 50% Tariff Structure on Indian Goods The US tariff on India now totals 50% on most Indian exports, combining a 10% baseline duty, a 25% reciprocal tariff (announced on April 2, 2025), and an additional 25% tariff effective August 27, 2025. Unlike the China (30%) or Vietnam and the Philippines (20%), India and Brazil face the highest tariff rate among major US trade partners. Exempted Sectors Certain high-priority sectors remain exempt to safeguard US supply chains, including: Pharmaceuticals Semiconductors Energy resources (crude oil, natural gas) Critical minerals This exemption protects India’s strategic exports, especially its generic drug industry, which supplies nearly 50% of the US pharmaceutical market. Sectors Most Affected The following industries face the greatest exposure under the new 50% tariff regime: Textiles and apparel Gems and jewelry Leather and footwear Marine products Chemicals Automobile components Collectively, these sectors make up over 55% of India’s exports to the US, placing them at high risk from the tariff hike. List of Indian Products Impacted by US Tariff Rates Product Category Tariff Rate (August 7, 2025) Tariff Rate (August 27, 2025) Textiles & Apparel 25% 50% Gems & Jewelry 25% 50% Leather & Footwear 25%(20.8–29.51% for footwear) 50% (45.8–54.51% for footwear) Marine Products 33.26% (25% + 2.49% anti-dumping + 5.77% countervailing) 58.26% (50% + 2.49% + 5.77%) Chemicals (Organic) 25% 50% Automobiles & Auto Parts 25% 50% Iron, Steel, Aluminum 25% (5–12.5% for industrial goods) 50% (30–37.5% for industrial goods) Agricultural Products 25% (e.g., onions at 25.54%) 50% (e.g., onions at 50.54%) Machinery & Engineering Goods 25% 50% Ceramic, Glass, Stone 25% 50% Rubber Items 25% 50% Paper & Wood Products 25% 50% Furniture 25% 50% Dairy Products 56.46% (buttermilk, fermented milk); 30.84% (milk powder) 81.46%; 55.84% Pharmaceuticals 0% 0% Electronics & Semiconductors 0% 0% Energy Products 0% 0% Critical Minerals 0% 0% Source Ministry of Commerce Impact on the Indian Economy The tariffs threaten India’s USD 434 billion export engine, with USD 87 billion directed to the US, equivalent to 2.5% of India’s GDP. Industry estimates suggest a USD 4–5 billion drop in engineering exports alone. Overall GDP growth could decline by 0.2–0.5%, with forecasts revised from 6.5% to as low as 6%. The sectors like Small and medium enterprises (MSMEs), which dominate textiles and leather, face reduced competitiveness against rivals in Vietnam and Bangladesh, where tariffs are lower. The Indian rupee has weakened in offshore markets, raising concerns about imported inflation and increased borrowing costs for foreign debt-laden companies. Challenges Dependence on the US market : India's exports are still highly dependent on the US. Complexity of the global supply chain : Lower production costs in countries like China could weaken India's competitiveness. Domestic policy gaps : There are still many shortcomings in export promotion and logistics improvements. Currency fluctuations : The rupee's volatility against the dollar also impacts exports. To navigate these risks, Indian e-commerce stakeholders must adopt a multi-tiered strategy: A. Operational Adaptability Decentralized Sourcing: Moving from a "Single Source" (e.g., China) to a "China + 1" or "Domestic First" strategy to avoid country-specific reciprocal tariffs. Dynamic Pricing Engines: Implementing AI-driven pricing that can automatically adjust for real-time tariff fluctuations at the checkout stage, maintaining margin transparency. B. Technical & Compliance Strategy Landed Cost Transparency: E-commerce platforms should integrate "Total Landed Cost" calculators. Showing duties as a separate line item preserves brand trust by explaining price hikes as regulatory rather than profit-driven. Rules of OriginAutomation: Leveraging blockchain or advanced ERPs to prove the "Indian Origin" of goods to benefit from India's existing Free Trade Agreements (FTAs) with the UAE, Australia, and potentially the UK. C. Policy Advocacy and Structural Shifts Transition to GST over Tariffs: India has argued that Goods and Services Tax (GST) is a more efficient way to collect revenue from digital imports than traditional customs duties. Transitioning to a consumption-based tax model mitigates the risk of "double taxation" and trade wars. E-commerce Export Hubs (EEH): Utilizing government-backed hubs to consolidate small shipments, reducing the per-unit cost of customs compliance. Tariff Mitigation Strategies for Indian Industries Businesses can often reduce, delay, or avoid tariffs. Here are 11 ways businesses can mitigate their exposure to tariffs. Tariff Mitigation Strategies for Businesses 1 2 3 4 Reclassification and valuation Supply chain optimization Bonded warehouses and FTZs First sale rule 5 6 7 8 Free trade agreements Supplier management Temporary import bonds Price adjustments and cost absorption 9 10 11 Local manufacturing and assembly Tariff engineering Duty drawback programs Source Author’s own work Major impacts on Indian economy: • Decline in exports and increase in costs: Due to higher the US tariffs, Indian engineering goods exports are expected to decline by $ 4 − 5 billion, which will directly impact small and medium enterprises (MSMEs). • Pressure on trade balance: The trade balance with the US may deteriorate as the demand for Indian products may decrease in the US market due to higher costs. • Sectoral impact: Labour-intensive sectors like textiles, leather, gems and jewelry may take a big hit, affecting millions of jobs. • Uncertainty over investment and growth: Frequent changes in tariffs increase uncertainty, which could slow down investment and hiring by Indian companies and could lead to a potential decline of 0.2 − 0.5% in GDP. • Looking for alternative markets: Indian exporters are now turning to alternative markets like China, UAE, Spain and Bangladesh instead of the US, which can open new avenues for Indian exports. Scope of the Study The breadth of this research is extensive yet concentrated, addressing various aspects of tariff risks in Indian e-commerce. The US tariff situation may be challenging for the Indian economy in the short term, but in the long term it may push India to become more self-reliant and diversify its exports into the global supply chain because success in 2026 is not just in selling products, but in developing “Tariff Resilience”. Indian e-commerce brands should look to new FTA partners (like the EU) while reducing their dependence on the US and take advantage of government reforms to strengthen the domestic market. Conclusion The researcher found that that change in US tariff rates, especially higher tariffs; pose a mixed challenge to the Indian economy, impacting export-led sectors. This has put pressure on approximately $ 87 billion worth of exports to the US, which could reduce competitiveness and negatively impact jobs in industries such as engineering, textiles and gems. However, some other reports have also observed that India may be in a better situation than other Asian countries. Declarations Clinical Trail Number Not Applicable Funding Declaration Not applicable because the author does not apply for funding in any agencies. Ethics, Consent to Participate, and Consent to publish declarations Not Applicable Author’s Contribution Declaration Prof. (Dr.) Mohit Sharma prepared and finalized the introduction, data collection, Results and Discussion & conclusion. Dr. Preeti Mishra finalized the literature review and objectives and research gap. Dr. Vikash Kumar Pandey worked out on the SWOT Analysis and help in data collection. Dr. Ansu Royit finalized the Strategic Mitigation Framework, Major impacts on Indian economy. Acknowledgement Acknowledged the same References Goldar, B. (2005). Impact On India Of Tariff And Quantitative Restrictions Under WTO. November Working Paper No. 172 Published In Indian Council For Research On International Economic Relations Core-6A 2005, 4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003. Gupta, A. (2025). Published research paper on Tariff Wars: Impact on India & World Economy on August 2025. OECD. (2000). Guidelines for consumer protection in the context of electronic commerce. https://www.oecd.org/sti/consumer/34023811.pdf. Pal, B. D, & Ajmani, M. (2025). US tariffs on the horizon: How will India’s economy be affected policy note of International Food Policy Research Institute on January 2025. U.T.R. Sridhar Prasad published research paper on Economic research report on trump'stariffs.https://www.researchgate.net/publication/397058545_Economic_research_report_on_trump%27s_tariffs. USTR Releases 2025 National Trade Estimate Report ’, dated March 31, 2025, available at URL:https://ustr.gov/about/policy-offices/press-office/press-releases/2025/march/ustr-releases-2025-national-trade-estimate-report. Vancauteren, M., Reinsdorf, M., Veldhuizen, E., Eugene van der, P., Carsten, B., & Airaksinen, A. (2011). E-commerce. In United Nations Economic Commission for Europe (Eds.). The Impact of Globalization on National Accounts , 249–261 . Director General of Foreign Trade (DGFT). (2023). Foreign Trade Policy 2023, Chapter 9. Available at https://content.dgft.gov.in/Website/dgftprod/2a0f81fa-fdb9-4d01-acd4-e35865edf903/FTP2023_Chapter09.pdf. Website https://www.india-briefing.com/news/indias-union-budget-2024-25-key-announcements33723.html/#:~:text=Effective%20capital%20expenditure%20is%20estimated,trillion%20(US%24575%20billion). https://www.pib.gov.in/PressReleasePage.aspx?PRID=2035618#:~:text=The%20Finance%20Minister%20informed%20that,4.9%20per%20cent%20of%20GDP. https://kpmg.com/in/en/home/services/tax/india-union-budget-2024-25.html https://content.dgft.gov.in/Website/dgftprod/6fa664dd-040d-4e1f-bd94-a0478856be5b/FTP2023_Chapter01.pdf https://iccwbo.org/global-insights/trade/multilateral-trade-wto/wto-e-commerce-moratorium/ https://unctad.org/publication/global-trade-update-january-2026-top-trends-redefining-global-trade-2026 https://www.netsuite.com/portal/resource/articles/business-strategy/tariff-mitigation-strategies.shtml https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1912572®=3&lang=2 Additional Declarations No competing interests reported. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-8898122","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":597390006,"identity":"3707a607-df6d-4fba-8394-bae9246440a1","order_by":0,"name":"Prof. (Dr.) Mohit Sharma","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAAA80lEQVRIiWNgGAWjYDCCA0DM2CDBwCAB5tqAuI0HiNEiAdWSBuYSo4UBpuUwXBAn4Lt9gHXDxx0WdfKzm599ulFzPnFt+2GgLTU20bi0SJ5LYLs584yEhMGdY8azc47dTtx2JhGo5VhabgMOLQZnGNhu87YBtUgkGDPnsAG1HABqYWw4TFiL/Iz0z8w5/84lbjv/kEgtDDdyjJlz2w4kbrtBwBbJM4xtN2e2SUhuuJFTzJzbl2y87QbQlgQ8fuE7w3zsxse2On6gwzYz53yzk912Pv3hgw81Nji1gCMFGTiCuQk4lWMB9qQoHgWjYBSMgpEBAAoiZsoGEQ+7AAAAAElFTkSuQmCC","orcid":"","institution":"Shri Venkateshwara University","correspondingAuthor":true,"prefix":"","firstName":"Prof.","middleName":"(Dr.) Mohit","lastName":"Sharma","suffix":""},{"id":597390007,"identity":"330187d3-3315-4ce8-9d7a-b2f745831520","order_by":1,"name":"Dr. Preeti Mishra","email":"","orcid":"","institution":"Shri Venkateshwara University","correspondingAuthor":false,"prefix":"Dr.","firstName":"Preeti","middleName":"","lastName":"Mishra","suffix":""},{"id":597390008,"identity":"8854169d-5b92-4039-a167-becc99b72bfb","order_by":2,"name":"Dr. Vikash Kumar Pandey","email":"","orcid":"","institution":"Shri Venkateshwara University","correspondingAuthor":false,"prefix":"Dr.","firstName":"Vikash","middleName":"Kumar","lastName":"Pandey","suffix":""},{"id":597390009,"identity":"c857f51c-0d81-4c80-b67b-22d472fc0f29","order_by":3,"name":"Dr. Ansu Royit","email":"","orcid":"","institution":"Shri Venkateshwara University","correspondingAuthor":false,"prefix":"Dr.","firstName":"Ansu","middleName":"","lastName":"Royit","suffix":""}],"badges":[],"createdAt":"2026-02-17 06:24:42","currentVersionCode":1,"declarations":"","doi":"10.21203/rs.3.rs-8898122/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-8898122/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":104397983,"identity":"88565704-b5a5-4971-9b81-41ec789aa1c3","added_by":"auto","created_at":"2026-03-11 11:59:06","extension":"png","order_by":1,"title":"Figure 1","display":"","copyAsset":false,"role":"figure","size":14141,"visible":true,"origin":"","legend":"\u003cp\u003eUnnumbered image in the Literature Review section.\u003c/p\u003e","description":"","filename":"1.png","url":"https://assets-eu.researchsquare.com/files/rs-8898122/v1/bb9e24724459b631b163c44b.png"},{"id":103558569,"identity":"91eba5b9-b9db-4362-ab27-fdf83f03d384","added_by":"auto","created_at":"2026-02-27 05:01:10","extension":"jpg","order_by":2,"title":"Figure 2","display":"","copyAsset":false,"role":"figure","size":46863,"visible":true,"origin":"","legend":"\u003cp\u003eUnnumbered image in the Result \u0026amp; 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Discussion section.\u003c/p\u003e","description":"","filename":"5.png","url":"https://assets-eu.researchsquare.com/files/rs-8898122/v1/de3153817809de45fe3901cd.png"},{"id":105035173,"identity":"dba4822f-2bc9-4e29-bde9-1a0b5791400c","added_by":"auto","created_at":"2026-03-20 07:25:37","extension":"pdf","order_by":0,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":1473311,"visible":true,"origin":"","legend":"","description":"","filename":"manuscript.pdf","url":"https://assets-eu.researchsquare.com/files/rs-8898122/v1/b27362b8-8a07-4f4f-b8c8-967a12492efb.pdf"}],"financialInterests":"No competing interests reported.","formattedTitle":"Strategic Analysis to Mitigate the Tariff Risks in E-Commerce Industries in Context to","fulltext":[{"header":"Introduction","content":"\u003cp\u003eThis paper provides a brief study on analysis to mitigate the tariff risk in e-commerce industries in India. Before analysis to mitigate tariff risks, we know about the tariff. E-commerce improves productivity and expands options by means of cost reductions, increased competitiveness, and improved organization of the production process (Vancauteren et al., \u003cspan citationid=\"CR7\" class=\"CitationRef\"\u003e2011\u003c/span\u003e). For the purposes of this study, we define tariffs as taxes that governments impose on imported or exported goods. Most often, governments apply tariffs to imported goods, but they will sometimes impose them on exports, too\u0026mdash;for example, to discourage companies from selling strategically important products to foreign buyers. A tariff is calculated as a percentage of the value of the goods and is, therefore, known as an ad valorem tax.\u003c/p\u003e \u003cp\u003eTariffs imposed by countries around the world to protect domestic industries and respond to unfair foreign trade practices create challenges for any company doing business across international borders. Those businesses may have to raise domestic prices as tariffs increase the cost of imported raw materials, parts, and finished goods, and export sales may be affected if foreign countries impose retaliatory tariffs of their own. Efforts have been made to actively advance the sector as outlined in the Union Budget (2024-25); the foreign trade policy of 2023 also includes measures to support e-commerce exports (DGFT, 2023).\u003c/p\u003e \u003cp\u003eHowever, by using effective tariff mitigation strategies, businesses engaged in international trade can continue to produce distinctive, high-quality products, develop new markets, and potentially increase their profits. Previous research has primarily highlighted manufacturing exports and large multinational corporations. Few studies have investigated e-commerce platforms, small and medium-sized enterprises (SMEs), and cross-border online sellers. There is a lack of thorough analysis regarding how frequent revisions of tariffs, customs regulations, and trade policies contribute to uncertainty for e-commerce businesses. Additionally, there are limited recommendations for policy-driven strategies aimed at risk mitigation.\u003c/p\u003e \u003cp\u003eThe Indian e-commerce industry, projected to reach a market valuation of over \u003cspan\u003e$\u003c/span\u003e200\u0026nbsp;billion by 2026, stands at a crossroads. While the sector has thrived under a \"tariff-free\" digital environment, the expiration of the WTO Moratorium on Customs Duties on Electronic Transmissions (scheduled for March 31, 2026) introduces a paradigm shift. For a developing country like India, which is both a massive consumer of digital imports and an emerging exporter of digital services, the reintroduction of tariffs poses a double-edged risk to operational costs and global competitiveness.\u003c/p\u003e \u003cp\u003eThe majority of studies focus on tariff risks associated with traditional trade, rather than specifically addressing those within e-commerce industries. There is a limited amount of research that presents that combines tariff risks with strategic management approaches in the realm of digital commerce. Current studies predominantly concentrate on developed economies. There is a notable absence of India-specific empirical research that tackles tariff risks in e-commerce from the perspective of a developing country.\u003c/p\u003e \u003cp\u003eThe America First Trade Policy memorandum calls for a comprehensive review of U.S. trade policy, trade practices, and trade imbalances. The memorandum outlines trade and economic policy recommendations to address priority areas of trade, several of which may have important implications for companies and their supply chains. However, the full impacts of the tariff plan and global trade policy remain to be seen. While some policy changes have already taken effect, U.S. trade policy and the economic landscape will continue to see developments. Businesses must be prepared to act quickly and align business strategies as policies update and evolve. Our global trade and supply chain management experts are monitoring developments to offer tailored guidance and scenario planning for organizations across industries. Let us help you stay informed and navigate the evolving trade, policy, and economic landscape. Track the latest and stay ahead with insights, alerts, webinars, and guidance from our experts.\u003c/p\u003e\n\u003ch3\u003eRisk Identification: The \"Tariff Shock\" of 2026\u003c/h3\u003e\n\u003cp\u003eTariff risks in India’s e-commerce landscape are categorized into three primary dimensions:\u003c/p\u003e \u003cp\u003eDigital Transmission Duties: The potential end of the WTO moratorium allows member nations to impose duties on \"bits and bytes\"—digitally delivered software, music, movies, and AI models.\u003c/p\u003e \u003cp\u003eReciprocal Trade Barriers: As India explores digital taxes (like the Equalization Levy), trading partners (notably the U.S.) have responded with reciprocal tariffs on Indian physical exports (textiles, gems, and electronics), affecting e-commerce sellers who export via \"E-commerce Export Hubs.\"\u003c/p\u003e \u003cp\u003eDe Minimis Threshold Changes: Global shifts to lower de minimis values (duty-free limits for small parcels) threaten the \"drop shipping\" and cross-border B2C models that many Indian MSMEs rely on.\u003c/p\u003e "},{"header":"Literature Review","content":"\u003cp\u003ePrasad (2025) says that US tariffs on Indian goods present a meaningful risk to certain export-oriented sectors and pose challenges for job-rich manufacturing segments; the aggregate macroeconomic impact for India is likely to remain manageable in the short term—with GDP growth drag estimated at somewhere between ~ 0.1 and ~ 0.6 percentage points based on current studies. India’s relatively modest export share to the US, large domestic market orientation, and export diversification potential serve as buffers. Nevertheless, the real concern lies in the medium to long term: persistent tariffs can erode competitiveness, shift global supply chains away from India, inflict structural damage in labor-intensive sectors, and raise the stakes for export policy. The policy response thus becomes pivotal—timely exporter support, market diversification, value-addition, and domestic demand strengthening will determine whether India turns this challenge into an impetus for upgrading its manufacturing and export ecosystem.\u003c/p\u003e\u003cp\u003eGupta (\u003cspan class=\"CitationRef\"\u003e2025\u003c/span\u003e) says that tariff wars, particularly those initiated by the US on countries, especially China and other countries like Canada, Mexico, the EU, and India, have highly affected the global trade landscape. It led to disrupted supply chains, inflationary pressures, and strategic trade realignments. While these tensions created economic challenges, they also opened long-term opportunities for emerging economies like India. Due to its developing manufacturing capacity and demographic advantage, India stands as a strategic junction in global supply chain diversification. However, to exploit the opportunities, India must address its structural weakness and promote self-reliance in key sectors. Hence, a strong policy framework, investment in infrastructure development, and skilled professionals like CAs are essential to navigate these global uncertainties.\u003c/p\u003e\u003cp\u003eAccording to Pal and Ajmani (\u003cspan class=\"CitationRef\"\u003e2025\u003c/span\u003e), India and the United States share a strong bilateral trade relationship. The United States is one of few countries with which India has a positive trade balance. Therefore, any shift in US tariff policy will significantly impact the Indian economy. In this note, we presented results from a single-country economy-wide model that was used to assess the impact of bilateral tariff policy on the Indian economy. The following policy insights emerged.\u003c/p\u003e\u003cp\u003eGoldar (\u003cspan class=\"CitationRef\"\u003e2005\u003c/span\u003e) said that Indian industry has been impacted by India’s commitments on tariffs and quantitative restrictions under the WTO. It has been argued that while a large reduction has been made in the level of tariff between 1991 and 2004, this cannot be considered an outcome of India’s commitments under the WTO since the tariff reforms have been largely independent of India’s commitments. The tariff reform did have a significant effect on Indian industry, but these effects cannot be attributed to India’s commitments.\u003c/p\u003e\n\u003ch3\u003eObjectives\u003c/h3\u003e\n\u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eTo analyze the tariff-related risks encountered by e-commerce industries in India and to assess strategic measures for alleviating their effects on industry performance.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eTo examine the role of technical and compliance strategies in minimizing tariff-related uncertainties.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eTo propose a strategic framework for mitigating tariff risks within the Indian e-commerce sector.\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e\n\u003ch3\u003eConceptual framework Model:\u003c/h3\u003e\n\u003cp\u003eTariff Risk Factors(Digital Tariffs, Reciprocal Tariffs,Policy Uncertainty, De Minimis Changes)\u003c/p\u003e \n\u003ch3\u003eResearch Design\u003c/h3\u003e\n\u003cp\u003eThe researcher adopted a descriptive research design. This design is most suitable because the main goal is to describe the existing strategies and observed impacts of the trade shifts in 2025-26 without necessarily establishing a causal link. The researcher adopted two approaches, i.e,\u003c/p\u003e \u003cp\u003eApproach: A mixed-methods approach, combining quantitative data (trade volumes, tariff rates) with qualitative insights (expert interviews, strategic frameworks).\u003c/p\u003e \u003cp\u003eTime Horizon: Cross-sectional, focusing specifically on the period starting October 2025 through the current fiscal year (2026).\u003c/p\u003e\n\u003ch3\u003eData Collection Methods\u003c/h3\u003e\n\u003cp\u003eTo capture the rapid changes in the Indian e-commerce sector, the study will utilize secondary data sources.\u003c/p\u003e \u003cp\u003eGovernment Reports: Analyzing the Union Budget 2026 (which introduced customs duty reliefs for D2C exporters) and reports from the Directorate General of Foreign Trade (DGFT).\u003c/p\u003e \u003cp\u003eTrade Databases: Sourcing data from the Ministry of Commerce \u0026amp; Industry\u0026rsquo;s Export-Import Data Bank to track shifts in export destinations (e.g., pivot from the US to EFTA or UAE).\u003c/p\u003e \u003cp\u003eIndustry Whitepapers: Utilizing reports from logistics firms (e.g., I Think Logistics, Shiprocket) and consulting firms (EY, Deloitte) regarding \"Delivered Duty Paid\" (DDP) adoption and \"Tariff Engineering.\"\u003c/p\u003e \u003cdiv id=\"Sec8\" class=\"Section2\"\u003e \u003ch2\u003eSWOT Analysis in Indian economy\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"No\" id=\"Taba\" border=\"1\"\u003e \u003ccolgroup cols=\"2\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eStrength\u003c/p\u003e \u003cp\u003e\u0026bull; Competitive IT, Pharma, Textiles and Service sector.\u003c/p\u003e \u003cp\u003e\u0026bull; Strategic trade location and young workforce.\u003c/p\u003e \u003cp\u003e\u0026bull; Growing manufacturing base due to schemes like make in India, Aatmanirbhar Bharat, Vikshit Bharat etc.\u003c/p\u003e \u003cp\u003e\u0026bull; Increase in FDI due to China\u0026thinsp;+\u0026thinsp;1 strategy.\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eWeakness\u003c/p\u003e \u003cp\u003e\u0026bull; Dependency on imports for electronics and industrial components.\u003c/p\u003e \u003cp\u003e\u0026bull; Logistics and infrastructure challenges as compared to China.\u003c/p\u003e \u003cp\u003e\u0026bull; Trade Deficits with US and China.\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eOpportunities\u003c/b\u003e\u003c/p\u003e \u003cp\u003e\u0026bull; Potential substitute to China for low cost manufacturing.\u003c/p\u003e \u003cp\u003e\u0026bull; Multinational companies are attracted which are seeking diversification.\u003c/p\u003e \u003cp\u003e\u0026bull; Skill development and diversification in exports.\u003c/p\u003e \u003cp\u003e\u0026bull; Bilateral Foreign Trade Agreements with EU, UK and Southeast Asia.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e\u003cb\u003eThreats\u003c/b\u003e\u003c/p\u003e \u003cp\u003e\u0026bull; U.S. tariffs on Indian goods may make it uncompetitive in the US markets.\u003c/p\u003e \u003cp\u003e\u0026bull; Inflation due to costlier raw material imports\u003c/p\u003e \u003cp\u003e\u0026bull; Increase in cost of producing due to global tariff on raw materials and spare parts.\u003c/p\u003e \u003cp\u003e\u0026bull; Shipping and export routes affected due to geopolitical tensions.\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"2\"\u003e\u003cem\u003eSource\u003c/em\u003e Author\u0026rsquo;s own work\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e"},{"header":"Result \u0026 Discussion","content":"\u003cp\u003eThe research focuses on the assessment on developing economies and its impact in India.\u003c/p\u003e \u003cp\u003eImpact Assessment on Developing Economies (India Focus)\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"No\" id=\"Tabb\" border=\"1\"\u003e \u003ccolgroup cols=\"3\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSector\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eNature of Risk\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eImpact Severity\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSaaS\u0026amp; Software\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eIncreased cost of imported enterprise tools.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eHigh\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eB2C Retail (Cross-border)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eReduced price competitiveness in U.S./EU markets.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMedium-High\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eEntertainment/Media\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eHigher licensing costs for streaming and gaming.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eMedium\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLogistics/Last-Mile\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003eIncreased compliance and \"red tape\" costs at customs.\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eHigh\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"3\"\u003e\u003cem\u003eSource\u003c/em\u003e Author\u0026rsquo;s own work\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e\n\u003ch3\u003eUS Tariff Impact in Indian Economy\u003c/h3\u003e\n\u003cp\u003eAs per the 1999 guidelines of the Organization for Economic Cooperation and Development (OECD), e-commerce encompasses online business activities, which include communications such as advertising and marketing, as well as transactions that involve ordering, invoicing, and payments (OECD, \u003cspan citationid=\"CR3\" class=\"CitationRef\"\u003e2000\u003c/span\u003e).\u003c/p\u003e \u003cp\u003eThe US has imposed tariffs of up to 50% on Indian goods, negatively impacting India's exports. Export growth rates, particularly in traditional sectors such as textiles, gems and jewelry, and leather goods, have declined significantly.\u003c/p\u003e \u003cdiv id=\"Sec11\" class=\"Section2\"\u003e \u003ch2\u003eKey Points\u003c/h2\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eIndia's exports to the US fell by 15% in September 2025, compared to 20% in April-August 2025.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eTextiles and readymade garments exports recorded an annual decline of 10.1%.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eCotton yarn and fabric exports declined by 11.7%.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eGems and jewelry growth slowed to a mere 0.4%.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eIn contrast, electronic goods exports grew by 50.5%, particularly sharply in smartphone exports.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eTrump's tariff policy has begun to impact shrimp prices in the US market, with prices rising by 15\u0026ndash;20%.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eIndia's share of supplies in the US shrimp market is approximately 45%, worth approximately \u003cspan\u003e$\u003c/span\u003e6\u0026nbsp;billion annually.\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec12\" class=\"Section2\"\u003e \u003ch2\u003eCurrent Tariff rates imposed by US\u003c/h2\u003e \u003cp\u003eThe data is given in table below;\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"No\" id=\"Tabc\" border=\"1\"\u003e \u003ccolgroup cols=\"4\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCountry\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eReciprocal tariff rate announced April 2, 2025\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eStatus of reciprocal tariff\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e \u003cp\u003eCurrent tariff rate\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eAustralia\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e10%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eActive as of April 5, 2025\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e10%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eBangladesh\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e37%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 20%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e20%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCambodia\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e49%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 19%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e19%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eCanada\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25% for most goods; 10% for energy and potash; 0% for USMCA-compliant goods\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e25% tariff increased to 35% on August 1, 2025\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e35%\u0026nbsp;(Read\u0026nbsp;our blog\u0026nbsp;for updates and details on Canada tariffs)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eChina\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e34%, increased to 84% then 125%, then decreased to 10%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e10%;\u0026nbsp;set to increase on November 10, 2026\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e30%+ (Read our blog for updates and details on China tariffs)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eEU\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e20%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 15%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e15%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIndia\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e26%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 25%; increased to 50% on August 27, 2025\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIndonesia\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e32%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 19%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e19%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eIsrael\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e17%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 15%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e15%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eJapan\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e24%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 15%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e15%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eMexico\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u0026nbsp;for most goods; 10% for energy and potash; 0% for USMCA-compliant goods\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eSet to increase to 30% in October 2025\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003ePakistan\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e29%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 19%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e19%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSouth Korea\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 15%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e15%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eSwitzerland\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e31%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eIncreased to 39%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e39%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eTaiwan\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e32%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 20%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e20%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eThailand\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e36%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 19%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e19%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eUK\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e10%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eActive as of April 5, 2025\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e10%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eVietnam\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e46%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eLowered to 20%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e \u003cp\u003e20%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"4\"\u003e\u003cem\u003eSource\u003c/em\u003e Ministry of Commerce\u003c/td\u003e\u003c/tr\u003e \u003ctr\u003e\u003ctd colspan=\"4\"\u003eCurrent tariff rates imposed by US\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003cdiv description=\"\" class=\"Drawing\" id=\"2\" name=\"Chart 2\"\u003e\u003c/div\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec13\" class=\"Section2\"\u003e \u003ch2\u003eThe 50% Tariff Structure on Indian Goods\u003c/h2\u003e \u003cp\u003eThe US tariff on India now totals 50% on most Indian exports, combining a 10% baseline duty, a 25% reciprocal tariff (announced on April 2, 2025), and an additional 25% tariff effective August 27, 2025. Unlike the China (30%) or Vietnam and the Philippines (20%), India and Brazil face the highest tariff rate among major US trade partners.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec14\" class=\"Section2\"\u003e \u003ch2\u003eExempted Sectors\u003c/h2\u003e \u003cp\u003eCertain high-priority sectors remain exempt to safeguard US supply chains, including:\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003ePharmaceuticals\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eSemiconductors\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eEnergy resources (crude oil, natural gas)\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eCritical minerals\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eThis exemption protects India\u0026rsquo;s strategic exports, especially its generic drug industry, which supplies nearly 50% of the US pharmaceutical market.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec15\" class=\"Section2\"\u003e \u003ch2\u003eSectors Most Affected\u003c/h2\u003e \u003cp\u003eThe following industries face the greatest exposure under the new 50% tariff regime:\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eTextiles and apparel\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eGems and jewelry\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eLeather and footwear\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eMarine products\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eChemicals\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eAutomobile components\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003cp\u003eCollectively, these sectors make up over 55% of India\u0026rsquo;s exports to the US, placing them at high risk from the tariff hike.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec16\" class=\"Section2\"\u003e \u003ch2\u003eList of Indian Products Impacted by US Tariff Rates\u003c/h2\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"No\" id=\"Tabd\" border=\"1\"\u003e \u003ccolgroup cols=\"3\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003eProduct Category\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e \u003cp\u003eTariff Rate (August 7, 2025)\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003eTariff Rate (August 27, 2025)\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eTextiles \u0026amp; Apparel\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eGems \u0026amp; Jewelry\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eLeather \u0026amp; Footwear\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%(20.8\u0026ndash;29.51% for footwear)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50% (45.8\u0026ndash;54.51% for footwear)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eMarine Products\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e33.26% (25% + 2.49% anti-dumping\u0026thinsp;+\u0026thinsp;5.77% countervailing)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e58.26% (50% + 2.49% + 5.77%)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eChemicals (Organic)\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eAutomobiles \u0026amp; Auto Parts\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eIron, Steel, Aluminum\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25% (5\u0026ndash;12.5% for industrial goods)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50% (30\u0026ndash;37.5% for industrial goods)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eAgricultural Products\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25% (e.g., onions at 25.54%)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50% (e.g., onions at 50.54%)\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eMachinery \u0026amp; Engineering Goods\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eCeramic, Glass, Stone\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eRubber Items\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003ePaper \u0026amp; Wood Products\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eFurniture\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e25%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e50%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eDairy Products\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e56.46% (buttermilk, fermented milk); 30.84% (milk powder)\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e81.46%; 55.84%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003ePharmaceuticals\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eElectronics \u0026amp; Semiconductors\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eEnergy Products\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003eCritical Minerals\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e0%\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"3\"\u003e\u003cem\u003eSource\u003c/em\u003e Ministry of Commerce\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cp\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec17\" class=\"Section2\"\u003e \u003ch2\u003eImpact on the Indian Economy\u003c/h2\u003e \u003cp\u003eThe tariffs threaten India\u0026rsquo;s USD 434\u0026nbsp;billion export engine, with USD 87\u0026nbsp;billion directed to the US, equivalent to 2.5% of India\u0026rsquo;s GDP.\u003c/p\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003eIndustry estimates suggest a USD 4\u0026ndash;5\u0026nbsp;billion drop in engineering exports alone.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eOverall GDP growth could decline by 0.2\u0026ndash;0.5%, with forecasts revised from 6.5% to as low as 6%.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eThe sectors like Small and medium enterprises (MSMEs), which dominate textiles and leather, face reduced competitiveness against rivals in Vietnam and Bangladesh, where tariffs are lower.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003eThe Indian rupee has weakened in offshore markets, raising concerns about imported inflation and increased borrowing costs for foreign debt-laden companies.\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec18\" class=\"Section2\"\u003e \u003ch2\u003eChallenges\u003c/h2\u003e \u003cp\u003e \u003cspan type=\"Underline\" class=\"Underline\" name=\"Emphasis\"\u003eDependence on the US market\u003c/span\u003e: India's exports are still highly dependent on the US.\u003c/p\u003e \u003cp\u003e \u003cspan type=\"Underline\" class=\"Underline\" name=\"Emphasis\"\u003eComplexity of the global supply chain\u003c/span\u003e: Lower production costs in countries like China could weaken India's competitiveness.\u003c/p\u003e \u003cp\u003e \u003cspan type=\"Underline\" class=\"Underline\" name=\"Emphasis\"\u003eDomestic policy gaps\u003c/span\u003e: There are still many shortcomings in export promotion and logistics improvements.\u003c/p\u003e \u003cp\u003e \u003cspan type=\"Underline\" class=\"Underline\" name=\"Emphasis\"\u003eCurrency fluctuations\u003c/span\u003e: The rupee's volatility against the dollar also impacts exports.\u003c/p\u003e \u003cp\u003e To navigate these risks, Indian e-commerce stakeholders must adopt a multi-tiered strategy:\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec19\" class=\"Section2\"\u003e \u003ch2\u003eA. Operational Adaptability\u003c/h2\u003e \u003cp\u003eDecentralized Sourcing: Moving from a \"Single Source\" (e.g., China) to a \"China\u0026thinsp;+\u0026thinsp;1\" or \"Domestic First\" strategy to avoid country-specific reciprocal tariffs.\u003c/p\u003e \u003cp\u003eDynamic Pricing Engines: Implementing AI-driven pricing that can automatically adjust for real-time tariff fluctuations at the checkout stage, maintaining margin transparency.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec20\" class=\"Section2\"\u003e \u003ch2\u003eB. Technical \u0026amp; Compliance Strategy\u003c/h2\u003e \u003cp\u003eLanded Cost Transparency: E-commerce platforms should integrate \"Total Landed Cost\" calculators. Showing duties as a separate line item preserves brand trust by explaining price hikes as regulatory rather than profit-driven.\u003c/p\u003e \u003cp\u003eRules of OriginAutomation: Leveraging blockchain or advanced ERPs to prove the \"Indian Origin\" of goods to benefit from India's existing Free Trade Agreements (FTAs) with the UAE, Australia, and potentially the UK.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec21\" class=\"Section2\"\u003e \u003ch2\u003eC. Policy Advocacy and Structural Shifts\u003c/h2\u003e \u003cp\u003eTransition to GST over Tariffs: India has argued that Goods and Services Tax (GST) is a more efficient way to collect revenue from digital imports than traditional customs duties. Transitioning to a consumption-based tax model mitigates the risk of \"double taxation\" and trade wars.\u003c/p\u003e \u003cp\u003eE-commerce Export Hubs (EEH): Utilizing government-backed hubs to consolidate small shipments, reducing the per-unit cost of customs compliance.\u003c/p\u003e \u003c/div\u003e \u003cdiv id=\"Sec22\" class=\"Section2\"\u003e \u003ch2\u003eTariff Mitigation Strategies for Indian Industries\u003c/h2\u003e \u003cp\u003eBusinesses can often reduce, delay, or avoid tariffs. Here are 11 ways businesses can mitigate their exposure to tariffs.\u003c/p\u003e \u003cp\u003e \u003cdiv class=\"gridtable\"\u003e\u003ctable float=\"No\" id=\"Tabe\" border=\"1\"\u003e \u003ccolgroup cols=\"7\"\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c1\" colnum=\"1\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c2\" colnum=\"2\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c3\" colnum=\"3\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c4\" colnum=\"4\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c5\" colnum=\"5\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c6\" colnum=\"6\"\u003e\u003c/div\u003e \u003cdiv align=\"left\" class=\"colspec\" colname=\"c7\" colnum=\"7\"\u003e\u003c/div\u003e \u003cthead\u003e \u003ctr\u003e \u003cth align=\"left\" colspan=\"7\" nameend=\"c7\" namest=\"c1\"\u003e \u003cp\u003eTariff Mitigation Strategies for Businesses\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003ctr\u003e \u003cth align=\"left\" colname=\"c1\"\u003e \u003cp\u003e1\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c3\"\u003e \u003cp\u003e2\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c5\"\u003e \u003cp\u003e3\u003c/p\u003e \u003c/th\u003e \u003cth align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/th\u003e \u003cth align=\"left\" colname=\"c7\"\u003e \u003cp\u003e4\u003c/p\u003e \u003c/th\u003e \u003c/tr\u003e \u003c/thead\u003e \u003ctbody\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eReclassification and valuation\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eSupply chain optimization\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eBonded warehouses and FTZs\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003eFirst sale rule\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003e5\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u003cb\u003e6\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u003cb\u003e7\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003e\u003cb\u003e8\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eFree trade agreements\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eSupplier management\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eTemporary import bonds\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e \u003cp\u003ePrice adjustments and cost absorption\u003c/p\u003e \u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003e\u003cb\u003e9\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003e\u003cb\u003e10\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003e\u003cb\u003e11\u003c/b\u003e\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003ctr\u003e \u003ctd align=\"left\" colname=\"c1\"\u003e \u003cp\u003eLocal manufacturing and assembly\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c2\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c3\"\u003e \u003cp\u003eTariff engineering\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c4\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c5\"\u003e \u003cp\u003eDuty drawback programs\u003c/p\u003e \u003c/td\u003e \u003ctd align=\"left\" colname=\"c6\"\u003e\u0026nbsp;\u003c/td\u003e \u003ctd align=\"left\" colname=\"c7\"\u003e\u0026nbsp;\u003c/td\u003e \u003c/tr\u003e \u003c/tbody\u003e \u003c/colgroup\u003e \u003ctfoot\u003e \u003ctr\u003e\u003ctd colspan=\"7\"\u003e\u003cem\u003eSource\u003c/em\u003e Author\u0026rsquo;s own work\u003c/td\u003e\u003c/tr\u003e \u003c/tfoot\u003e \u003c/table\u003e\u003c/div\u003e \u003c/p\u003e \u003cdiv id=\"Sec23\" class=\"Section3\"\u003e \u003ch2\u003eMajor impacts on Indian economy:\u003c/h2\u003e \u003cp\u003e \u003cul\u003e \u003cli\u003e \u003cp\u003e\u0026bull; Decline in exports and increase in costs: Due to higher the US tariffs, Indian engineering goods exports are expected to decline by \u003cspan\u003e$\u003c/span\u003e4\u0026thinsp;\u0026minus;\u0026thinsp;5\u0026nbsp;billion, which will directly impact small and medium enterprises (MSMEs).\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003e\u0026bull; Pressure on trade balance: The trade balance with the US may deteriorate as the demand for Indian products may decrease in the US market due to higher costs.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003e\u0026bull; Sectoral impact: Labour-intensive sectors like textiles, leather, gems and jewelry may take a big hit, affecting millions of jobs.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003e\u0026bull; Uncertainty over investment and growth: Frequent changes in tariffs increase uncertainty, which could slow down investment and hiring by Indian companies and could lead to a potential decline of 0.2\u0026thinsp;\u0026minus;\u0026thinsp;0.5% in GDP.\u003c/p\u003e \u003c/li\u003e \u003cli\u003e \u003cp\u003e\u0026bull; Looking for alternative markets: Indian exporters are now turning to alternative markets like China, UAE, Spain and Bangladesh instead of the US, which can open new avenues for Indian exports.\u003c/p\u003e \u003c/li\u003e \u003c/ul\u003e \u003c/p\u003e \u003c/div\u003e \u003c/div\u003e \u003cdiv id=\"Sec24\" class=\"Section2\"\u003e \u003ch2\u003eScope of the Study\u003c/h2\u003e \u003cp\u003eThe breadth of this research is extensive yet concentrated, addressing various aspects of tariff risks in Indian e-commerce. The US tariff situation may be challenging for the Indian economy in the short term, but in the long term it may push India to become more self-reliant and diversify its exports into the global supply chain because success in 2026 is not just in selling products, but in developing \u0026ldquo;Tariff Resilience\u0026rdquo;. Indian e-commerce brands should look to new FTA partners (like the EU) while reducing their dependence on the US and take advantage of government reforms to strengthen the domestic market.\u003c/p\u003e \u003c/div\u003e"},{"header":"Conclusion","content":"\u003cp\u003eThe researcher found that that change in US tariff rates, especially higher tariffs; pose a mixed challenge to the Indian economy, impacting export-led sectors. This has put pressure on approximately \u003cspan\u003e$\u003c/span\u003e87\u0026nbsp;billion worth of exports to the US, which could reduce competitiveness and negatively impact jobs in industries such as engineering, textiles and gems. However, some other reports have also observed that India may be in a better situation than other Asian countries.\u003c/p\u003e "},{"header":"Declarations","content":"\u003cdiv id=\"Sec26\" class=\"Section2\"\u003e\n\u003ch2\u003eClinical Trail Number\u003c/h2\u003e\n\u003cp\u003eNot Applicable\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eFunding Declaration\u003c/strong\u003e\u003c/p\u003e\n\u003cp\u003eNot applicable because the author does not apply for funding in any agencies.\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv id=\"Sec27\" class=\"Section2\"\u003e\n\u003ch2\u003eEthics, Consent to Participate, and Consent to publish declarations\u003c/h2\u003e\n\u003cp\u003eNot Applicable\u003c/p\u003e\n\u003c/div\u003e\n\u003cdiv id=\"Sec28\" class=\"Section2\"\u003e\n\u003ch2\u003eAuthor\u0026rsquo;s Contribution Declaration\u003c/h2\u003e\n\u003cp\u003e\u003cstrong\u003eProf. (Dr.) Mohit Sharma\u003c/strong\u003e prepared and finalized the introduction, data collection, Results and Discussion \u0026amp; conclusion.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eDr. Preeti Mishra\u003c/strong\u003e finalized the literature review and objectives and research gap.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eDr. Vikash Kumar Pandey\u003c/strong\u003e worked out on the SWOT Analysis and help in data collection.\u003c/p\u003e\n\u003cp\u003e\u003cstrong\u003eDr. Ansu Royit\u003c/strong\u003e finalized the Strategic Mitigation Framework, Major impacts on Indian economy.\u003c/p\u003e\n\u003c/div\u003e\n\u003ch2\u003e\u0026nbsp;\u003c/h2\u003e\n\u003ch2\u003eAcknowledgement\u003c/h2\u003e\n\u003cp\u003eAcknowledged the same\u003c/p\u003e"},{"header":"References","content":"\u003cul\u003e\n \u003cli\u003eGoldar, B. (2005). Impact On India Of Tariff And Quantitative Restrictions Under WTO. \u003cem\u003eNovember Working Paper No. 172 Published In Indian Council For Research On International Economic Relations Core-6A 2005,\u0026nbsp;\u003c/em\u003e4th Floor, India Habitat Centre, Lodi Road, New Delhi-110 003.\u003c/li\u003e\n \u003cli\u003eGupta, A. (2025). Published research paper on \u003cem\u003eTariff Wars: Impact on India \u0026amp; World Economy\u0026nbsp;\u003c/em\u003eon August 2025.\u0026nbsp;\u003c/li\u003e\n \u003cli\u003e\u003cem\u003eOECD.\u0026nbsp;\u003c/em\u003e(2000).\u003cem\u003e\u0026nbsp;Guidelines for consumer protection in the context of electronic commerce.\u0026nbsp;\u003c/em\u003ehttps://www.oecd.org/sti/consumer/34023811.pdf.\u0026nbsp;\u003c/li\u003e\n \u003cli\u003ePal, B. D, \u0026amp; Ajmani, M. (2025). US tariffs on the horizon: How will India\u0026rsquo;s economy be affected policy note of \u003cem\u003eInternational Food Policy Research Institute on January\u003c/em\u003e 2025.\u003c/li\u003e\n \u003cli\u003eU.T.R. Sridhar Prasad published research paper on Economic research report on trump\u0026apos;stariffs.https://www.researchgate.net/publication/397058545_Economic_research_report_on_trump%27s_tariffs.\u003c/li\u003e\n \u003cli\u003eUSTR Releases 2025 \u003cem\u003eNational Trade Estimate Report\u003c/em\u003e\u0026rsquo;, dated March 31, 2025, available at URL:https://ustr.gov/about/policy-offices/press-office/press-releases/2025/march/ustr-releases-2025-national-trade-estimate-report.\u003c/li\u003e\n \u003cli\u003eVancauteren, M., Reinsdorf, M., Veldhuizen, E., Eugene van der, P., Carsten, B., \u0026amp; Airaksinen, A. (2011). E-commerce. In United Nations Economic Commission for Europe (Eds.). \u003cem\u003eThe Impact of Globalization on National Accounts\u003c/em\u003e, 249\u0026ndash;261 .\u0026nbsp;\u003c/li\u003e\n \u003cli\u003eDirector General of Foreign Trade (DGFT). (2023). Foreign Trade Policy 2023, Chapter 9. Available at https://content.dgft.gov.in/Website/dgftprod/2a0f81fa-fdb9-4d01-acd4-e35865edf903/FTP2023_Chapter09.pdf.\u003c/li\u003e\n\u003c/ul\u003e\n\u003cp\u003e\u003cstrong\u003eWebsite\u003c/strong\u003e\u003c/p\u003e\n\u003cul\u003e\n \u003cli\u003ehttps://www.india-briefing.com/news/indias-union-budget-2024-25-key-announcements33723.html/#:~:text=Effective%20capital%20expenditure%20is%20estimated,trillion%20(US%24575%20billion).\u003c/li\u003e\n \u003cli\u003ehttps://www.pib.gov.in/PressReleasePage.aspx?PRID=2035618#:~:text=The%20Finance%20Minister%20informed%20that,4.9%20per%20cent%20of%20GDP.\u003c/li\u003e\n \u003cli\u003ehttps://kpmg.com/in/en/home/services/tax/india-union-budget-2024-25.html\u003c/li\u003e\n \u003cli\u003ehttps://content.dgft.gov.in/Website/dgftprod/6fa664dd-040d-4e1f-bd94-a0478856be5b/FTP2023_Chapter01.pdf\u003c/li\u003e\n \u003cli\u003ehttps://iccwbo.org/global-insights/trade/multilateral-trade-wto/wto-e-commerce-moratorium/\u0026nbsp;\u003c/li\u003e\n \u003cli\u003ehttps://unctad.org/publication/global-trade-update-january-2026-top-trends-redefining-global-trade-2026\u003c/li\u003e\n \u003cli\u003ehttps://www.netsuite.com/portal/resource/articles/business-strategy/tariff-mitigation-strategies.shtml\u003c/li\u003e\n \u003cli\u003ehttps://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=1912572\u0026amp;reg=3\u0026amp;lang=2\u003c/li\u003e\n\u003c/ul\u003e"}],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":true,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"","isAcceptedByJournal":false,"isAuthorSuppliedPdf":false,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":false,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Tariffs, WTO Moratorium, E-commerce, Strategic Mitigation, Cross-border Trade","lastPublishedDoi":"10.21203/rs.3.rs-8898122/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-8898122/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eIn today's volatile trade environment, global tariff risk mitigation is a critical priority for businesses engaged in international commerce. Recent developments, such as the United States imposing a 10% universal tariff on imports and imposing higher rates on major trading partners, have introduced significant market uncertainty and supply chain disruptions. Companies must deal with a complex web of tariffs, with some Chinese goods facing rates as high as 145%. Effective global tariff risk mitigation strategies are essential to protect profit margins, maintain competitive pricing, and ensure supply chain resilience in this challenging landscape. The United States Trade Representative (USTR) source indicates that although the Indian government has pursued ongoing economic reform efforts, US exporters continue to face significant tariff and non-tariff barriers that hinder imports of US products into India. The World Trade Organization estimates that the most favored nation import duty imposed on India is 13.8 percent, the highest among any major economy.\u003c/p\u003e","manuscriptTitle":"Strategic Analysis to Mitigate the Tariff Risks in E-Commerce Industries in Context to","msid":"","msnumber":"","nonDraftVersions":[{"code":1,"date":"2026-02-27 05:01:05","doi":"10.21203/rs.3.rs-8898122/v1","editorialEvents":[{"type":"communityComments","content":0}],"status":"published","journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true}}],"origin":"","ownerIdentity":"968c329b-f3bd-476d-9fe9-55661e38dc3b","owner":[],"postedDate":"February 27th, 2026","published":true,"recentEditorialEvents":[],"rejectedJournal":[],"revision":"","amendment":"","status":"posted","subjectAreas":[],"tags":[],"updatedAt":"2026-03-19T15:11:20+00:00","versionOfRecord":[],"versionCreatedAt":"2026-02-27 05:01:05","video":"","vorDoi":"","vorDoiUrl":"","workflowStages":[]},"version":"v1","identity":"rs-8898122","journalConfig":"researchsquare"},"__N_SSP":true},"page":"/article/[identity]/[[...version]]","query":{"redirect":"/article/rs-8898122","identity":"rs-8898122","version":["v1"]},"buildId":"XKTyCvWXoU3ODBz1xrDgd","isFallback":false,"isExperimentalCompile":false,"dynamicIds":[84888],"gssp":true,"scriptLoader":[]}