Welcome to this week’s Sourcing Spotlight.
In this weeks edition, Trump’s early February tariff and trade moves signal a shaky de escalation not a reset: India gets an 18% “plan-able” tariff lane (with snap back risk), China gets warmer tone but no big cuts, and critical minerals are being ring fenced via a US led preferred sourcing zone that could quietly reprice BOMs.
Feature Story
Trump and Modi’s 18% Tariff Truce
India is back in the pricing conversation. The US has dropped India’s reciprocal rate to 18% and removed an additional 25% duty linked to Russian crude, shifting a lot of India to US sourcing from “unworkable” to “expensive but plan-able”. That is big news for tariff sensitive categories like apparel, leather, footwear and home décor, and it also unlocks something boring but powerful: forward contracting without constant policy paralysis. But don’t get carried away, 18% is still a real cost, and the relief looks conditional, which means the “snap back” risk is part of the deal. Read on for the categories most likely to feel it first, the Monday morning landed cost reset checklist, and how to avoid getting whiplashed when the politics moves again.
Trump Xi Call Signals a Trade Thaw
Trump and Xi’s 4 February 2026 call nudged markets toward “truce continuation” rather than “reset”, with the only hard new detail being a bigger soybean purchase commitment, and no headline US tariff cuts. For sourcing teams, think warmer tone, structurally high friction: baseline China duties remain elevated, strategic sectors stay tight, and Taiwan risk is managed not resolved. Read on for what to watch next, especially any April Beijing visit announcements, whether the truce mechanics run past November 2026, and how US tariff legal challenges could reshape the policy toolkit.
US Critical Minerals Trade Zone and Project Vault
The US is attempting a coordinated critical minerals club through the new FORGE forum, pairing preferential sourcing with reference pricing and the Project Vault stockpile to make non Chinese supply chains more investable and less exposed to export controls or price shocks. For brands, this is a cue to map mineral exposure beyond tier one suppliers, stress test landed costs if price floors lift inputs, and watch for rules of origin style requirements that steer sourcing into the preferred network. Read on for what this could mean for your BOM, supplier contracts, and margin protection over the next 12 to 24 months.
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As tariffs escalate, Illinois finds itself caught in the crossfire. From manufacturing supply chains tied to Canada and Mexico, to billions in farm exports now facing retaliation
That’s it for this weeks Sourcing Spotlight.
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Until next time,
Quiet sourcing. Loud impact.
