India Tariffs Lower Than Sri Lanka, Thailand
India’s average tariff on goods imported from the United States in 2023 stood at 6.1 %, making it lower than those imposed by several other Asian countries. Sri Lanka charged 8.4 % on U.S. goods, while Thailand levied 6.9 %. These figures directly challenge claims that India is overly protectionist when it comes to trade with the U.S.
U.S. Tariffs on Indian Goods Still Higher
Despite India’s relatively modest tariff rates, the U.S. imposed higher average duties on Indian goods. In 2024, Indian exports to the U.S. faced an average tariff of 17.4 %. While this is lower than the rates faced by countries like Bangladesh, Sri Lanka, and Pakistan, it is still significant and affects India’s trade competitiveness.
Political Rhetoric vs. Trade Reality
The trade numbers come at a time when political leaders in the U.S. have accused India of being a “tariff king.” However, data reveals that India’s tariffs on U.S. goods are not only moderate but lower than some of its regional peers. The current political narrative appears disconnected from actual trade policy.
Impact of Reciprocal Tariffs
The U.S. recently announced new tariffs on Indian exports starting August 2025. These include a 25 % base tariff along with additional penalties, citing energy trade links with Russia as a reason. Sectors such as textiles, auto components, jewellery, and electronics are expected to be the hardest hit. Indian exporters could lose ground in the U.S. market, while American businesses may face higher costs for Indian inputs.
India’s Trade Offer
To reduce tensions, India has proposed tariff reductions on nearly $23 billion worth of U.S. imports. The move is aimed at reviving trade talks and restoring balance. Experts believe that any long-term solution will require mutual concessions and a focus on facts over rhetoric.
