The new tariff structure makes Indian exports cheaper and more competitive in the US market.
The new trade deal between India and the United States reduces tariffs on Indian exports to 18 per cent from what was effectively 50 per cent. India will reduce tariff and non-tariff barriers on US products to zero, President Donald Trump announced on Monday.
Earlier, the US tariffs included a 25 per cent reciprocal tariff and an additional 25 per cent penalty, which Washington linked to India’s continued purchase of crude oil from Russia despite US objections.
The new tariff structure makes Indian exports cheaper and more competitive in the US market.
Where other countries stand
With the new tariff system, India is now in a better position than many other countries that export goods to the US. Because India faces lower import taxes, its products become cheaper for American buyers. Countries like China, Pakistan, Indonesia, Bangladesh, and Vietnam still face higher tariffs.
How other countries compare
According to the White House, Brazil faces the highest US tariff at 50 per cent, followed by Myanmar and Laos at 40 per cent each, China at 37 per cent, and South Africa at 30 per cent.
Developed economies, including the European Union, Japan, South Korea, and Switzerland, enjoy lower tariffs of 15 per cent, while the United Kingdom faces just 10 per cent.
Compared to Southeast Asian countries, India now has lower tariffs, with Bangladesh and Vietnam at 20 per cent and Malaysia, Cambodia, Thailand, and Pakistan at 19 per cent.
After speaking with Prime Minister Narendra Modi over a phone call, Trump, on Truth Social, wrote, “We spoke about many things, including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian oil and to buy much more from the United States and, potentially, Venezuela.”
Hours later, PM Modi also praised the deal on X, writing, “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.”
But the Indian Prime Minister did not mention cutting or stopping Russia’s oil imports.
India’s oil imports from Russia
India has been buying a large amount of Russian crude oil, roughly 1.5 million barrels a day. According to trade data provider Kpler, Russian oil accounts for more than one‑third of India’s total crude imports, reports CNN.
