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U.S. tariffs on Indian goods among lowest after trade deal
The U.S. tariff on Indian goods comes close to those being levied on America’s closest allies.
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IANS - Tue, 03, Feb 2026
- 09:43 EST
- 25
Representative Image / Courtesy: IANS
With the new trade deal with the U.S. in place, India is now among the nations with one of the lowest tariff rates being imposed by the Donald Trump administration compared with other Asian economies such as China, Pakistan, Indonesia, Bangladesh, and Vietnam.
The U.S. tariff on Indian goods comes close to those being levied on America’s closest allies, which include the United Kingdom (10 percent), the European Union (15 percent), Switzerland (15 percent), Japan (15 percent), and South Korea (15 percent).
Some of the countries facing the highest tariffs from the U.S. include Brazil (50 percent), Myanmar (40 percent), Laos (40 percent), China (37 percent), and South Africa (30 percent).
ALSO READ: Experts call India U.S. trade agreement a boost to India’s global negotiating power
India and the United States have agreed to a trade deal under which Washington will slash its tariff on Indian goods to 18 per cent from the current 50 per cent in exchange for New Delhi halting Russian oil purchases and lowering trade barriers, U.S. President Trump said. The American leader announced the deal on social media following a call with Indian Prime Minister Narendra Modi, noting that India would now buy oil from the U.S. and potentially Venezuela.
Prime Minister Modi said he was delighted that "Made in India products will now have a reduced tariff of 18 percent."
"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 said.
The Prime Minister said that when two large economies and the world's largest democracies work together, it benefits the people and "unlocks immense opportunities for mutually beneficial cooperation".
The U.S. has decided to scrap the punitive 25 per cent duty on all imports from India over its purchases of Russian oil.
PM Modi also committed India to "BUY AMERICAN at a much higher level," in addition to buying more than $500 billion worth of U.S. energy, including coal, along with technology, agricultural and other products, Trump said on social media.
"They will likewise move forward to reduce their tariffs and non-tariff barriers against the United States to ZERO," Trump said of India.
Until Trump returned to office and raised U.S. tariff rates to double-digit levels last year, India had some of the world's highest tariffs, with a simple applied rate of 15.6 per cent and an effective applied tariff of 8.2 per cent, according to World Trade Organisation data.
Trump's Truth Social message provided few details, including on the start date for the lower tariff rates, the deadline for India to end Russian oil purchases, trade barrier reductions and which U.S. products India had committed to purchasing.
Discover more at New India Abroad.
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