We want to provide some insight on the current tariffs impacting imports from India and share the steps we are taking to maintain supply chain stability and cost competitiveness.
Understanding the Tariff Impact
The recently enacted 50% tariff on Indian imports may sound significant, but, as it is applied to only the declared value of goods, the actual impact on the delivered cost is much lower than the tariff percentage may suggest.
Exploring Alternative Sources
India remains our primary source, but we are actively evaluating and working to onboard new partners in Vietnam, Bangladesh, and Indonesia. These markets still face tariffs, but at a lower percentage rate than India currently.
Transitioning production is a long-term investment, and we are carefully vetting suppliers to ensure they meet our standards for quality, capability, and service. In addition, a trade deal with India could be reached at any time, so the tariff on India may be lower than that on the previously mentioned countries, which are all set at a 20% tariff.
Weighing the Trade-Offs
India continues to deliver superior bag quality and shorter lead times. While alternative sources may offer modest cost reductions, we can expect longer lead times and potential quality trade-offs that the financial impact may not offset. We value our long-standing partnerships in India and recognize the importance of maintaining those relationships once tariffs ease.
Our Current Plan
- Maintain India as our primary source for its continued quality and reliability.
- Onboard non-India suppliers to diversify our supplier network and future contingency planning.
- Monitor U.S. and India trade talks closely, with optimism that tariffs will be reduced to a more reasonable rate soon.
Our Commitment
Our priority remains unchanged: to deliver high-quality products at competitive prices, while being transparent about the external factors that influence costs.
Thank you for your continued trust and partnership as we navigate these challenges together. Feel free to reach out to your account rep with any questions.