American duties on Indian goods slashed to 18%, lowest among major Asian economies
February 3,2026: India has emerged as the biggest beneficiary of the latest US tariff reductions in Asia, with American duties on Indian goods cut sharply from 50% to 18%. This is now the lowest tariff rate faced by any major Asian economy in the US market. In comparison, China continues to face tariffs of 34%, Japan 24%, South Korea 25%, Bangladesh 20%, Indonesia 19% and Pakistan 19%, underscoring the scale of relief granted to India and strengthening its competitive position in global trade.
The move has been welcomed across India’s political leadership. Home Minister Amit Shah said the decision would deepen the India–US strategic partnership, while Defence Minister Rajnath Singh termed it a boost for the ‘Make in India’ programme. External Affairs Minister S. Jaishankar described the tariff cut as strong support for India’s manufacturing ambitions, and Commerce Minister Piyush Goyal linked it to the broader vision of ‘Viksit Bharat 2047’. Chief Ministers Yogi Adityanath and Devendra Fadnavis also hailed the decision as a historic opportunity for Indian industry.
International voices have also reacted positively. Former US Trade Representative Mark Linscott called the tariff relief long-awaited and mutually beneficial for both economies. Significantly, the development comes just days after India signed a free trade agreement with the European Union, giving New Delhi a double trade boost within a single week and reinforcing its growing role in global supply chains.