India Gains Edge in Asia with US Trade Deal, Pakistan-Bangladesh Face Setback

• The US-India trade deal is finalized, reducing US tariffs on Indian goods to 18%, significantly altering Asia's trade landscape.
• India's trade-weighted average tariff with the US drops from 30% to 10.7%, making it a highly attractive destination for American companies.
• This new tariff rate positions India competitively against major Asian exporters like the Philippines (10.5%) and Thailand (10.6%).
• Countries like Vietnam (12.5%), Indonesia (16%), Pakistan (18.2%), Sri Lanka, and Bangladesh (over 19%) now face increased competition from India.
• Pakistan, with 15% of its exports (mainly textiles) under direct pressure, and Bangladesh, facing political uncertainty, are expected to suffer the most.

Why It Matters: India's new trade deal with the US significantly lowers tariffs, boosting its economic attractiveness and competitiveness in Asia.