• Source:JND

India-US Trade Deal: US President Donald Trump announced a tariff reduction on India on Monday night, following a historical India-US trade agreement. The US President claimed that he had reached a trade deal with India, which included purchasing over USD 500 billion worth of American products and reducing Indian tariffs and non-tariff barriers to zero. However, neither the White House nor India has provided any official information on this.

Trump's 18% tariff reduction on India will undoubtedly benefit Indian exporters, increasing demand for Indian products in the US compared to goods from Pakistan, China, and Bangladesh.

Lowest Among Neighbouring Countries

Trump has announced India will be subject to an 18% tariff instead of the 25% tariff. A White House official has confirmed that the punitive additional 25% tariff imposed on India will also be eliminated. This means that India will now be subject to only an 18% tariff instead of the 50% tariff. With this announcement, India now joins the list of countries that will face lower tariff rates in the US compared to other countries, including China, Pakistan, Indonesia, Bangladesh, and Vietnam. However, India still faces a small additional tariff compared to the European Union, Japan, and South Korea.

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The US imposed 20% tariffs on Vietnam, 20% on Bangladesh, 19% on Pakistan, 19% on Malaysia, 37% on China, 19% on Cambodia, and 19% on Thailand. India is now in a better position than these countries. However, Trump has also imposed very low tariffs on some countries, including the United Kingdom, the European Union, Switzerland, Japan, and South Korea.

trump tariff deal

Which Countries Still Face Higher Tariffs?

There are some countries that were put under the highest tariffs. Brazil, Myanmar, Laos, China, and South Africa. Currently, America imposed 50% tariffs on Brazil, 40% on Myanmar, 40% on Laos, 37% on China, and 30% on South Africa.

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These Countries Have Lower Tariffs Than India

Some countries have succeeded in striking a deal with the US, prompting the Trump administration to cut tariffs against them. The US imposed a 10% tariff on the United Kingdom, 15% on the European Union, 15% on Switzerland, 15% on Japan, and 15% on South Korea. Before Donald Trump's second term in office, US tariffs on India hadn't even reached double digits. At that time, India had a simple applied rate of 15.6% and an effective applied tariff of 8.2%.

Meanwhile, neither the United States nor India has stated when the terms of the deal will come into effect. The Modi government hasn't formally issued any statement on India's decision to completely stop buying Russian oil.

(With Jagran.com inputs)


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