As trade remains a key issue in discussions between Prime Minister Narendra Modi and US President Donald Trump, data highlights the tariff gap that has been a point of contention.
India’s weighted mean tariffs on US imports stood at 9.5 per cent before the budget and are set to decline to 8.5 per cent, while US tariffs on Indian imports remain significantly lower at around 3 per cent. This 6 per cent disparity has been a source of friction, with Trump pushing for reciprocal tariffs.
If the US moves forward with its proposed tariff hikes, India could face duties as high as 29 per cent, making it the most affected nation, followed by Brazil (28 per cent), the European Union (25 per cent), and the UK (24 per cent).