India Gains Edge Over Regional Export Competitors After Tariffs Drop to 18%, Beats China, Bangladesh
New Delhi: New Delhi now faces lower tariffs than regional export rivals in South and Southeast Asia, following Monday’s announcement of the India-US trade deal in which Washington reduced tariffs on India to 18 percent.
With its new tariff structure, India now has a clear advantage over rival export economies in the region; It has tariff rates that are 19 percent lower than Indonesia and 20 percent lower than Bangladesh and Vietnam.
Compared to China, India currently enjoys significantly lower tariffs; Customs duties imposed on Beijing are 34 percent. India also has a slight advantage over Pakistan, with customs duties imposed on Islamabad currently standing at 19 percent.
Earlier on Monday, US President Donald Trump said the US and India had “agreed on a trade deal” with Washington reducing mutual tariffs from 25 percent to 18 percent “out of friendship and respect” for Prime Minister Modi. He also stated that the agreement “will enter into force immediately.”
In his Truth Social post, Trump referred to his meeting with Prime Minister Modi earlier in the day, stating that the Prime Minister is one of his closest friends and a strong, respected leader of India.
The US President also claimed that Prime Minister Modi had agreed to “stop buying Russian oil” and buy much more from the US. Trump also noted that India will reduce tariffs and non-tariff barriers to the US.
“It was an honor to speak with Prime Minister Modi of India this morning. He is one of my closest friends and a Strong and Respected Leader of his Country. We talked about many things including trade and ending the war with Russia and Ukraine. He agreed to stop buying Russian Oil and buy much more from the US and potentially Venezuela. This will help END THE WAR currently going on in Ukraine where thousands of people are dying every week! Out of friendship and respect for the Prime Minister Modi and his “As requested, we have agreed to a Trade Agreement between the US and India, where the US will reduce mutual tariffs from 25% to 18%, and they will likewise move forward to reduce Tariffs and Non-Tariff Barriers to ZERO against the US.”
Following Trump’s post, Prime Minister Narendra Modi said in his post on
In a post on
