US Tariffs on Indian Chemicals Drop to 18%, Boosting Exports and Aarti Industries

• US tariffs on Indian specialty chemical exports have been reduced from over 50% to 18% following a historic trade agreement finalized on February 2.
• This reduction significantly benefits Indian chemical makers, with the US accounting for nearly $6 billion (20%) of India's total chemical exports.
• Aarti Industries, which earns 17-18% of its revenue from the US, expects a tremendous boost, as 40% of its export volumes previously faced the highest duties.
• The new tariff structure gives India a competitive edge over China in the US market, potentially leading to higher export volumes for Indian chemicals.
• Policy certainty from the agreement is also crucial, unblocking delayed investment decisions and customer engagements for companies like Aarti Industries.

Why It Matters: Reduced US tariffs to 18% significantly boost Indian specialty chemical exports, enhancing competitiveness against China.