|
Comment: Tariffs, capacity and timing reshape sourcing decisions

10 Feb '26

2 min read

Comment: Tariffs, capacity and timing reshape sourcing decisions

Pic: Shutterstock

Insights

Trade policy is increasingly setting the pace for sourcing decisions, with tariffs and compliance now moving in tandem.
Uneven retail demand across the EU and US is adding volatility to planning cycles.
Shipping overcapacity may improve reliability but disrupt cost structures.
As EU regulations tighten, timing policy shifts is becoming as critical as operational efficiency.

A clear signal landed at the start of February. The US–India trade understanding set a new tariff pathway, with the US moving to an ** per cent rate on Indian goods. The implication is bigger than one corridor. A template is emerging where market access and compliance commitments move together. In conversations with export teams over the past few days, the same question kept surfacing. How quickly can assortments and capacity be rebalanced without breaking service levels.

That urgency is colliding with uneven demand. Fresh data released at the beginning of the month shows EU retail trade volume fell *.* per cent month on month in December, while still up *.* per cent year on year across the bloc. In parallel, US government figures published mid-January indicate retail sales up *.* per cent year on year, with non-store channels up *.* per cent. This remains a reminder that channel mix volatility is a structural planning constraint as the year opens.