With the recent trade agreement between India and the US, India now boasts some of the lowest tariff rates imposed by the Trump administration compared to other Asian countries like China, Pakistan, Indonesia, Bangladesh, and Vietnam. The US tariffs on Indian goods are similar to those on America’s key allies, such as the United Kingdom, the European Union, Switzerland, Japan, and South Korea.
Under the trade deal, the US will reduce its tariff on Indian goods from 50 percent to 18 percent in exchange for India ceasing Russian oil purchases and lowering trade barriers, as announced by President Trump. Indian Prime Minister Narendra Modi expressed his satisfaction that “Made in India” products will now face a reduced tariff of 18 percent.
PM Modi emphasized the positive impact of collaboration between two major economies and the world’s largest democracies, highlighting the vast opportunities for mutually beneficial cooperation. The US has also decided to eliminate the 25 percent duty on all imports from India related to its Russian oil purchases.
President Trump revealed that India has committed to significantly increasing its purchases of American products, including over $500 billion worth of US energy, coal, technology, agricultural goods, and more. He also mentioned that India will work towards reducing tariffs and non-tariff barriers against the US to zero.
