India-US Trade Deal: Tariffs on Indian Goods to Drop to 18% Soon

• Tariff on Indian goods to the US currently stands at 25%, down from 50% after the removal of a 25% ad valorem duty linked to Russian oil imports.
• The ad valorem levy was removed on February 6, following India's commitment to stop importing Russian oil and purchase US energy products.
• A further reduction to 18% is expected shortly after the US issues a reciprocal tariff reduction order, as envisaged in the India-US trade deal.
• The 18% tariff will be applied under an amended Executive Order 14257, with additional concessions expected after the agreement is signed around March.
• This reduction is anticipated to enhance India's competitive position against South and Southeast Asian exporters, potentially impacting $2.6 billion worth of competing exports.