April 2026
We built the first agent-native Indian factory. Here's why.
A long-established Moradabad workshop, a public agent API, and the bet that B2B manufacturing is about to change.
Journal · May 2026 · Sourcing
A working note from a Moradabad manufacturer. The headline numbers, the practical actions, and the parts that will probably change before year-end.
On February 7, 2026, the US replaced its 25% IEEPA tariff on Indian goods with an 18% reciprocal tariff under Executive Order 14257. The 25% rate had been imposed in 2024 under emergency-powers authority, contested in court, and finally struck down by the Supreme Court in Learning Resources, Inc. v. Trump on February 20, 2026. The 18% replacement is the new baseline, and it is the number every importer sourcing from India should now plan around.
We're a manufacturer. We're not a customs broker, not a trade lawyer, not a substitute for either. But we ship roughly thirty percent of our work to US retail and design buyers, and the questions we're getting in May 2026 deserve a straight answer in one place. Here is what we are telling people who ask.
The 18% rate covers Indian-origin goods in a defined set of categories: textiles and apparel, leather and footwear, plastic and rubber, organic chemicals, home décor, artisanal products, and certain machinery. Decorative brass, copper, aluminum, iron, mixed-material home goods, candle holders, frames, hooks, hardware, lighting parts, and almost everything we make falls inside this band.
Some Indian categories sit at different rates. Pharma, gems and jewellery, agricultural commodities are negotiated separately. Verify your specific HS codes with your broker; do not assume the band you read about is the band that applies to your purchase order. We have seen importers off by 4–6 points on identical-looking SKUs because of how the home-décor and artisanal-products definitions interact at the line level.
The China comparison is what most US buyers are actually asking about. Chinese-origin metal home décor in the same categories now faces roughly thirty percent effective duty after layered Section 301, antidumping, and reciprocal measures stack. The exact number is SKU-dependent, but the spread between India and China is around twelve percentage points on most decorative metalware.
On a forty-foot container of brass tableware with a $50,000 declared value, the duty difference between Indian and Chinese origin is roughly $6,000. Across a year of monthly containers, that is one full container's worth of margin recovered.
That math is what is keeping new buyer conversations open in 2026. The fact that the 18% is real and stable matters more than the specific number — the worst thing for a buyer planning a 12-month line is a tariff that moves three times in eighteen months. Indian goods are now in the predictable bucket. Chinese goods, post-November 2025 escalations, are not.
Four practical moves we are seeing serious importers make right now.
One. File for refunds on duties paid pre-February 7 under the IEEPA rate. CBP opened the CAPE Phase 1 portal on April 20, 2026, for IEEPA refund requests on entries between the original imposition and February 7. If you imported Indian goods at the 25% rate during that window, the seven percentage points of difference is recoverable. Most freight forwarders are not flagging this proactively; ask yours directly, or instruct your broker to file. The deadline window is finite.
Two. Confirm HS codes line by line. Home décor and artisanal products both qualify for the 18% band, but the exact classification of a mixed-material piece — a brass-and-marble tray, a metal-and-wood frame, a resin-and-aluminum lamp base — can fall under different parent chapters with different effective rates. We provide HS code suggestions on request for any of our SKUs; your broker confirms the binding classification.
Three. Ask your supplier about CBAM if you also sell into the EU. The EU's Carbon Border Adjustment Mechanism entered its definitive phase on January 1, 2026. Iron and aluminum components in your products may be in scope; the importer threshold is fifty tonnes per year per importer. Even if you are below the threshold today, your declared embedded-emissions data on Indian-origin metalware is something serious EU retail buyers are starting to ask for. We supply the data sheet on request; many of our peers do not.
Four. Renegotiate Incoterms with new suppliers. The 18% has shifted what DDP versus FOB pricing actually means. We are seeing more US buyers ask for DDP quotes on smaller orders to lock in landed cost without holding the duty risk themselves. We will quote either way; what you want depends on how your AP team handles import duty and whether you have credit available against your customs broker's bond.
The US and India have committed to a Bilateral Trade Agreement, with a stated target of late 2026 or 2027 completion. Alongside the BTA, India agreed to a $500 billion purchase package of US goods. If the BTA closes on schedule, the 18% is likely to come down for several categories — by how much, on what schedule, and which categories first, none of that is public yet. Some categories may go to zero. Others may stay at the 18% reciprocal floor as a long-term feature of the relationship.
We are not telling buyers to wait. The supply relationships you build at 18% compound through any subsequent rate change. The buyer who locked in a Moradabad supplier in May 2026 at 18% will be in a stronger position whether the rate drops to 8% or stays at 18%, because the manufacturing capacity, sample history, and trust built across two production cycles is what determines whether a brand can move at scale when its category window opens. The duty rate is a margin variable; the supplier relationship is the product line.
"How does your workshop think about US buyers right now, given everything?"
The honest version: 2026 is harder for new buyer conversations than 2024 was, easier than 2025. The serious US importers we work with have one foot back in India after a difficult eighteen months, and they are asking harder questions about supplier stability than they used to. Years operating, audited compliance, documented capacity, named-buyer references, and renewable-energy chain of custody are now table stakes for any conversation that ends in a purchase order. We are fine with that — the asks have moved closer to what we already do.
If you are rethinking your 2026 sourcing structure for any of the home-décor, brass, copper, mixed-material categories we make, request access. We will send back a curated linesheet with the duty position already calculated for your shipping mode, the per-SKU MOQ and lead time, and the relevant compliance documentation under NDA. Two-hour response during Indian working hours.
Continue the conversation
Curated linesheet with US-landed pricing, duty position, MOQ, and lead time — sent within two hours during Indian working hours.