India-US trade deal
A big update has come on the long-running trade deal talks with America. US President Donald Trump himself has indicated about this. He has agreed to the deal with India. He also spoke to PM Modi on call, after which the entire trade equation changed. America had imposed an additional tariff of 25 percent and a reciprocal tariff of 25 percent on India. That means the total tariff had become 50 percent. Now the same America, after talking to PM Modi, has reduced it to only 18 percent. Which is less than China, Pakistan and Bangladesh. Let us understand Trump’s tariff move in this news and also know about the tariffs imposed on other countries.
This news on trade and tariffs from America is being considered good for the market, which can prove to be better for the auto sector to the textile sector of the country. Besides, trade with America is also expected to increase in the coming days. The most interesting thing among all this is that the tariff has been reduced towards America. It comes second in the emerging markets of the world. This means that among the emerging countries of the world, India will now have the lowest tariff after South Korea. Which is also a great sign for trade and development. Now the tariff on India will be less than that of China, Bangladesh and neighboring country Pakistan. India is likely to benefit from this in the coming times.
Tariffs on the world’s emerging markets
Still, if we talk about emerging markets, America has imposed the lowest tariff on South Korea which is 15 percent. After this comes India’s number which has now reached 18 percent. After this come the names of Thailand, Philippines, Malaysia, Indonesia, Mexico, South Africa, China and Brazil. Currently, America has imposed a tariff of 19 percent on Pakistan, which is higher than India. Apart from this, the tariff imposed on Bangladesh is higher than that on India.
Also read- Explained: Trump’s U-turn on tariffs! Those 5 big reasons due to which American attitude softened towards India