3 hours ago
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ARTICLE AD BOX
India and the United States person agreed connected a model for a bilateral commercialized woody nether which Washington volition trim tariffs connected Indian goods to 18% from the existent 50%.The announcement is important arsenic the US had imposed steep duties connected Indian exports entering American markets, effectual August 27, 2025.In August 2025, Washington announced a 25% tariff on with an further 25% punitive work connected India for purchasing Russian crude lipid and subject equipment. These duties were imposed implicit and supra existing tariffs connected Indian goods. Under the caller framework, the wide work has present been brought down to 18% .Prime Minister Narendra Modi welcomed the move, saying helium was delighted that "made successful India products volition present person a reduced tariff of 18%."Tariffs are customs oregon import duties imposed by a state connected goods bought from different nations.
How India compares globally
A examination of US tariff rates crossed large economies places India successful the mediate of the planetary tariff spectrum, with an 18% work connected its exports.Brazil faces the steepest tariff astatine 50% , followed by Myanmar and Laos astatine 40% each. China attracts a 37% tariff, portion South Africa faces a 30% levy.Several manufacturing hubs successful Southeast Asia are taxable to duties successful the 19–20% range, including Vietnam and Bangladesh astatine 20% , and Malaysia, Cambodia and Thailand astatine 19% each.
With an 18% tariff, India is present placed beneath astir emerging-market competitors, offering it a comparative pricing vantage successful the US market.Advanced economies bask importantly little tariffs. The European Union, Switzerland, Japan and South Korea each look a 15% duty, portion the United Kingdom has the lowest complaint astatine 10% .
The simplification successful tariffs is expected to payment India’s labour-intensive sectors, arsenic exporters volition beryllium capable to terms their products much competitively successful the US market.
Why the US imposed tariffs
The US has argued that it faces a important commercialized shortage with India, blaming New Delhi for imposing precocious tariffs connected American goods, which it says restrict US exports to the Indian market.Under the projected pact, India is expected to destruct duties connected definite goods immediately, signifier retired duties connected others, trim tariffs successful immoderate sectors, and connection quota-based tariff concessions for prime products.However, delicate sectors specified arsenic agriculture and dairy stay wholly extracurricular the ambit of the agreement, PTI reported.An enforcement bid from the US is expected to supply greater clarity connected tariff changes, portion a associated connection from some countries volition outline the sectors covered nether the deal. Both are awaited.
