US tariffs on Indian goods dropped from 50% to 18% on February 7, 2026.
Your New Competitive Position
Country | US Tariff Rate |
|---|---|
India | 18% |
Vietnam | 20% |
Bangladesh | 20% |
Pakistan | 19% |
China | 34% |
Who Wins (Check Your Sector)
Pharma & Gems: Moving to zero-duty access
Auto parts & Aircraft components: Preferential quotas under Section 232
Textiles, Leather, Footwear: Immediate 2-3% margin advantage over Vietnam/Bangladesh
MSMEs (Tirupur, Ludhiana, Kanpur, Coimbatore): 2 lakh new jobs projected
What India Gave Up
Cutting Russian oil imports, pivoting to US energy sources
Committed $500B in US purchases over 5 years (energy, tech, coal)
Opened agriculture access for US tree nuts, fruits, soy oil and spirits
Dairy, rice and wheat remain protected
Timeline That Matters
Now - March 2026: Orders placed now ship under 18% rate
Q2 2026: Full bilateral trade agreement negotiations begin
Within 6 months: India confirms acceptance of US/international standards (reduces testing delays)
US buyers are already recalculating their vendor costs. The factories that reach out first with updated pricing get the long-term contracts. The ones waiting to "see how it plays out" will be fighting for whatever's left.
Plan your move?
