How India gets upper hand over China, Pakistan, Bangladesh with new US trade deal| India News

US President Donald Trump “genuinely” considers Prime Minister Narendra Modi a “great friend” – a remark by US ambassador Sergio Gor that now appears borne out by outcomes. The India-US trade deal announced by the Republican leader, which took nearly a year of hard bargaining and tested both New Delhi and Washington, has finally been sealed, and more so, it places India in a stronger trade position than key regional rivals, China, Pakistan and Bangladesh.

US President Donald Trump and Prime Minister Narendra Modi. United States announced the India-US trade deal that lowers tariffs to 18%. (File photos)
US President Donald Trump and Prime Minister Narendra Modi. United States announced the India-US trade deal that lowers tariffs to 18%. (File photos)

Under the deal, the US has reduced tariffs on Indian goods to 18 per cent; with this revised tariff structure, India has lower levies than several competing export economies.

Track Live Updates on India US trade deal here

A deal better than China, Pakistan

India’s advantage is even more pronounced when compared to China, where tariffs remain steep at 34 per cent. Indonesia faces tariffs of 19 per cent, while Bangladesh and Vietnam are subject to 20 per cent each.

New Delhi also edges past Pakistan, which continues to face tariffs of 19 per cent, despite showing warmer ties with Washington in recent months, including White House dinners with Islamabad’s army chief Asim Munir and official nominations of Donald Trump for the Nobel Peace Prize.

The shift will place Indian exporters in a more favourable position across multiple sectors, especially at a time when global supply chains are being recalibrated.

The tariff cut is also expected to provide major relief to India’s textile sector, a key employer heavily dependent on the US market, where it had been at a disadvantage against rivals such as Bangladesh, Vietnam and China due to higher duties.

Modi welcomes tariff cut

Prime Minister Narendra Modi welcomed the announcement, calling Trump a “dear friend” and highlighting the immediate benefit for Indian exporters.

“Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement,” PM Modi wrote in a post on X.

Trump cites friendship with Modi

Earlier on Monday, US President Donald Trump announced that the two countries “have agreed to a trade deal”, cutting the reciprocal tariff on India from 25 per cent to 18 per cent.

He said the decision was taken “out of friendship and respect” for PM Modi and would come into force “effective immediately”.

In a post on Truth Social, Trump referred to a conversation with Modi earlier in the day, describing the Indian Prime Minister as one of his closest friends and a powerful global leader.

“It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela,” Trump’s post read.

As per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%,” it added.

Trump also said India would reduce tariffs and non-tariff barriers against the US as part of the agreement.

Separately, a White House official confirmed to HT that Washington will also withdraw the additional 25 per cent tariff imposed on Indian imports over New Delhi’s purchase of Russian oil.

Source link

Visited 1 times, 1 visit(s) today

Related Article

China to play constructive role 'in our way' on N. Korea: top envoy

China to play constructive role ‘in our way’ on N. Korea: top envoy

Chinese Ambassador to South Korea Dai Bing speaks during an interview with Yonhap News Agency at the Chinese Embassy in Seoul on Feb. 2, 2026. (Yonhap) SEOUL — China will continue to play a constructive role “in our way” for peace and stability on the Korean Peninsula, Beijing’s top envoy has said, hoping that the

Notepad++ Hosting Breach Attributed to China-Linked Lotus Blossom Hacking Group

Notepad++ Hosting Breach Attributed to China-Linked Lotus Blossom Hacking Group

Ravie LakshmananFeb 03, 2026Malware / Open Source A China-linked threat actor known as Lotus Blossom has been attributed with medium confidence to the recently discovered compromise of the infrastructure hosting Notepad++. The attack enabled the state-sponsored hacking group to deliver a previously undocumented backdoor codenamed Chrysalis to users of the open-source editor, according to new

Pakistani Prime Minister Shehbaz Sharif (File photo/REUTERS)

Pakistan faces crunch as demand for China-developed jets surges

Pakistan says it has fielded requests for its JF-17 fighter from five countries in recent months — a surge of interest that could overwhelm its capacity to jointly produce the jet with China. Pakistani Prime Minister Shehbaz Sharif (File photo/REUTERS) In the past month, Iraq, Bangladesh and Indonesia have expressed interest in acquiring the JF-17

China bans controversial car tech

China bans controversial car tech

Following a spate of criticism and reported fatalities, China has become the first nation to ban electric vehicles with concealed door handles, according to overseas reports. Bloomberg reports the Ministry of Industry and Information Technology has set new requirements which dictate EVs sold in the nation will need to have mechanical releases both inside and

Keir Starmer shakes hands with Xi Jinping in Beijing

Will China replace the US on the world stage? – podcast | China

Xi Jinping had a busy January. First came the Irish taoiseach, Micheál Martin. Then it was Mark Carney of Canada’s turn. He was followed by the Finnish prime minister, the Uruguayan president and then, last week, Keir Starmer. But what does this rush to China mean? The Guardian leader writer Tania Branigan says much of

ed4076ccbf1ae9c4b32b2bc13f807e0d.jpg

Covestro significantly boosts TDI capacity in China

Gasgoo Munich- Covestro officially announced on January 30 that it has successfully completed an expansion of its toluene diisocyanate (TDI) production facilities at its Shanghai integrated site. The upgrade lifts the site’s annual TDI capacity to 370,000 tonnes from 310,000 tonnes — a jump of nearly 20%. Image source: Covestro The move is aimed at

NVIDIA Corporation (NVDA)'s CEO Claims China is Still Finalizing Licence for the H200 Chip

NVIDIA Corporation (NVDA)’s CEO Claims China is Still Finalizing Licence for the H200 Chip

NVIDIA Corporation (NASDAQ:NVDA) is among the Ken Fisher Stock Portfolio: 12 Best Stocks to Buy. NVIDIA Corporation (NVDA)’s CEO Claims China is Still Finalizing Licence for the H200 Chip NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang stated that China is still finalizing a license to permit sales of the H200 artificial intelligence chip, according to a

CAC Tech Bureau Head on China’s AI-Generated Content Labeling Rules

CAC Tech Bureau Head on China’s AI-Generated Content Labeling Rules

On February 2, 2026, Yu Yonghe, head of the Network Management Technology Bureau at China’s Cyberspace Administration, published a signed article explaining how China built its labeling system for AI-generated content. Yu argues that as generative AI has rapidly moved into the mainstream, China has used content labeling to turn long-standing governance questions—what content is

Trump to Launch $12 Billion Critical Mineral Stockpile to Blunt Reliance on China

(Bloomberg) — President Donald Trump is set to launch a strategic critical-minerals stockpile with $12 billion in seed money, a bid to insulate manufacturers from supply shocks as the US works to slash its reliance on Chinese rare earths and other metals. The venture — dubbed Project Vault — is set to marry $1.67 billion

ET logo

Trump launches $12 billion minerals stockpile to counter China: Report

U.S. President Donald Trump is set to launch a strategic critical minerals stockpile ⁠with $12 billion in seed money, Bloomberg News reported on Monday, citing people familiar with the matter. The reported move would mark Washington’s latest attempt to offset what ‌policymakers view ‌as Chinese manipulation of prices for lithium, nickel, rare earths and other

Interactive_Pakistan_Minerals_Feb2_2026

How Balochistan attacks threaten Pakistan’s promises to China, Trump | Conflict News

Islamabad, Pakistan – When meeting United States President Donald Trump in the Oval Office in September, Pakistan’s army chief, Field Marshal Asim Munir, opened a briefcase with Prime Minister Shehbaz Sharif standing next to him. Inside were a set of glistening minerals. Their display was part of Pakistan’s latest offer to the Trump administration: The

China Supplies the Rare Metals That Keep Russia’s Missiles, Drones, and Tanks in Action

China’s Exports Help Russia Triple Production of Iskander Missiles — UNITED24 Media

Russia has tripled its monthly production of 9M723 ballistic missiles used in its Iskander-M systems, largely due to exports from China, according to a January report from the Center for Strategic and International Studies (CSIS), cited by Defense Express on February 1. The CSIS study, titled Russia’s Grinding War in Ukraine, identifies Chinese-sourced components as critical to sustaining and accelerating Russian missile production. These include ammonium

Dalai Lama won in the category of Best Audio Book, Narration, and Storytelling Recording, at the 68th Annual Grammy Awards (PTI)

‘Political manipulation’: China slams Grammy win for Dalai Lama

China’s Foreign Ministry spokesperson Lin Jian on Monday criticised the Tibetan Buddhist spiritual leader Dalai Lama’s first Grammy win. He described the music industry award for an audiobook, narration and storytelling as “a tool for anti-China political manipulation.” Dalai Lama won in the category of Best Audio Book, Narration, and Storytelling Recording, at the 68th

Kendrick Lamar accepts the award for best rap album for "GNX" during the 68th annual Grammy Awards on Sunday, Feb. 1, 2026, in Los Angeles. (AP Photo/Chris Pizzello)

China criticizes Dalai Lama’s Grammy award

BEIJING (AP) — Beijing on Monday criticized the Dalai Lama ’s first Grammy win, describing the music industry award for an audiobook, narration and storytelling as “a tool for anti-China political manipulation.” The Tibetan Buddhist spiritual leader, who lives in exile in India, took the award on Sunday for his book, “Meditations: The Reflections of

China executes four more members of Myanmar-based criminal gangs

BEIJING— China has executed four leading members of gangs based in northern Myanmar who were found guilty of multiple crimes, the official Xinhua news agency reported on Monday. The executions were carried out by a court in Shenzhen in southern China’s Guangdong province after receiving approval from the Supreme People’s Court. The four men belonged

0
Would love your thoughts, please comment.x
()
x