?India–US Trade Deal: Where India Stands with an 18% Tariff?
The US has agreed to cut tariffs on Indian exports to 18% under a new trade deal, while India will reduce tariff and non-tariff barriers on US goods, including agricultural imports.
The deal was announced after a call between President Donald Trump and Prime Minister Narendra Modi and is in the final stages, according to Commerce Minister Piyush Goyal, who said sensitive sectors like agriculture and dairy will be protected.
Earlier, in August 2025, the US had imposed a 25% tariff plus a 25% punitive duty on Indian exports. With the reduction to 18%, India now sits mid-range globally—lower than Brazil (50%), China (37%) and Canada (35%), but higher than the EU, Japan and South Korea (15%) and the UK (10%).
The tariff cut is expected to benefit apparel, electronics, and marine products, boosting exports from hubs like Tiruppur, mobile phone manufacturing, and shrimp farming in southern states.
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