New Delhi, Feb 3: A significant trade deal between India and the United States has positioned India among the nations enjoying the lowest tariff rates imposed by the Trump administration, especially when compared to other Asian economies like China, Pakistan, Indonesia, Bangladesh, and Vietnam. The U.S. tariff on Indian goods is now nearly on par with those applied to America’s closest allies, which include the United Kingdom (10%), the European Union (15%), Switzerland (15%), Japan (15%), and South Korea (15%).
Conversely, some countries face much higher tariffs from the U.S., with Brazil subjected to a 50% tariff, Myanmar at 40%, Laos at 40%, China at 37%, and South Africa at 30%. Under the new trade agreement, Washington will reduce its tariff on Indian goods to 18% from the previous 50%, in return for India’s commitment to cease purchases of Russian oil and to lower trade barriers.
President Trump announced the agreement on social media, following a call with Indian Prime Minister Narendra Modi, indicating that India will now source oil from both the U.S. and potentially Venezuela. Modi expressed his delight that “Made in India” products will benefit from a reduced tariff of 18%. “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18 per cent. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi stated.
The Prime Minister further emphasized that collaboration between two large economies and the world’s largest democracies brings significant advantages, unlocking vast opportunities for mutual cooperation. The U.S. has also decided to eliminate a punitive 25% duty on all imports from India related to its purchases of Russian oil.
Additionally, PM Modi pledged that India would engage in “BUY AMERICAN” at a significantly higher level, committing to over $500 billion in U.S. energy purchases, which includes coal, technology, agricultural products, and more, according to Trump. He also mentioned that India would work towards reducing tariffs and non-tariff barriers against the United States to zero.
Prior to Trump’s elevation to office, India had some of the world’s highest tariffs, with a simple applied rate of 15.6% and an effective applied tariff of 8.2%, according to data from the World Trade Organization. However, Trump’s recent messages offered minimal details concerning the implementation of the lower tariff rates, the timing for India to halt Russian oil purchases, trade barrier reductions, and specifics of U.S. products India plans to buy.
Original Source: https://assamtribune.com/business/after-trade-deal-us-tariffs-on-indian-goods-rank-among-the-lowest-1606404
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Publish Date: 2026-02-03 15:30:00
