Rantec Guar Report
U.S. Customs and Border Protection (CBP) has stopped the collection of certain tariffs under the International Emergency Economic Powers Act, effective February 24. This includes tariffs on guar gum originating from India and Pakistan.
Subsequently, the Trump administration has instituted a 10% worldwide tariff, and the White House is working to increase this rate to 15% at President Trump’s request. The Trade Act of 1974 allows the President to impose these tariffs for up to 150 days without congressional approval.
We therefore expect a 15% tariff on guar gum from both India and Pakistan.
U.S.–India trade talks have been put on hold.
Notably, India government removed the $20/MT guar incentive to manufacturers yesterday and reinstated it today. Market reacted similarly on both days.
We will continue to monitor the situation and provide updates.
Rick Bilodeau