US Cuts Import Duties on India Amid Trade Surplus

The United States has reduced its import tariff on India from 27% to 26%, effective April 9. This move is part of reciprocal tariffs introduced by President Trump. Despite the slight reduction, experts believe it won't significantly impact. The US remains India's top trading partner, maintaining a trade surplus.

The United States has taken a notable step in its trade relations with India by decreasing the import duties levied from 27% to 26%, as confirmed by a White House document. The revised tariffs will be enforced beginning April 9.

Announcing the new reciprocal tariffs, President Donald Trump presented a comparison chart listing the tariffs on international partners, including India, China, the UK, and the European Union. While India's original tariffs included currency manipulation and trade barriers at 52%, America's discounted tariff against India now stands at 26%.

Industry experts, however, have suggested that the marginal reduction of one percentage point will likely have negligible impacts. On a broader scale, the US continues to be India's largest trading partner, contributing to 18% of India's exports, 6.22% of imports, and maintaining a trade surplus of USD 35.32 billion in goods for 2023-24.

(With inputs from agencies.)