Cargo rush as full Trump tariffs take effect today

DHRUVAKSH SAHA, DEEPAK PATEL, AASHISH ARYAN, HARSH KUMAR & ASIT RANJAN MISHRA

- DHRUVAKSH SAHA, DEEPAK PATEL, AASHISH ARYAN, HARSH KUMAR & ASIT RANJAN MISHRA

With the United States' 26 percent reciprocal tariffs on Indian goods set to take full effect on Wednesday, exporters of high-value cargo, including smartphones, engineering goods, and automotive parts, are scrambling to ensure these goods are shipped out before the new rates are applied.

"Due to speculation about tariffs under the Donald Trump administration over the past few months, many consignments were shipped earlier than planned, with some exporters even altering their shipping methods to expedite delivery. The movement of consignments has increased slightly compared to earlier," said a senior Customs official.

Lancy Barboza, managing director of Mumbai-based freight forwarding firm Flomic Global Logistics, told Business Standard that outbound cargo volumes at India's major seaports and airports had surged between 18 percent and 22 percent over the past week.

According to the US executive order, the tariffs will take effect at 12.01 a.m. Eastern Daylight Time, or around 9.30 a.m. Indian Standard Time. The sense of urgency has been fueled by the fine print of the order, which says: "Goods loaded onto a vessel at the port of loading and in transit on the final mode of transit before 12.01 a.m. Eastern Daylight Time on April 9, 2025, and entered for consumption or withdrawn from warehouse for consumption after 12.01 a.m. Eastern Daylight Time on April 9, 2025, shall not be subject to these country-specific ad valorem rates of duty."