India Wins Tariff War: US Reduces Tariffs to 18%, EU FTA Signed

• India secured a Free Trade Agreement (FTA) with the European Union (EU), gaining access to a 27-country market.
• The US reduced its tariff on Indian goods from a deadly 50% to 18%, providing significant relief to exporters.
• Donald Trump's initial 50% tariff threat inadvertently pushed the EU to finalize an FTA with India.
• The reduced US tariff and EU FTA will boost key Indian sectors like textiles, gems and jewelry, chemicals, and leather.
• Exports worth approximately 4 lakh crore rupees, previously under 50% US tariff, will now benefit from the 18% rate.

Why It Matters: India achieved a dual victory by securing an EU FTA and a significant US tariff reduction, boosting its export market.