NewKerala.com

US Slashes Tariffs on India to 18%, Boosting Trade and Saving Jobs

Foreign affairs expert Robinder Sachdev hailed the US-India trade deal that lowers American tariffs on Indian goods to 18% from 50%, calling it welcome news for the Indian economy. He explained that every 1% of US tariff equates to roughly $1 billion in lost Indian exports and 100,000 jobs, meaning the previous high rate threatened massive economic damage. The deal also gives India a more favorable tariff rate than Pakistan, which was set at 19%. The agreement comes as External Affairs Minister S. Jaishankar visits the US for high-level talks focused on strengthening cooperation, including on critical mineral supply chains.

Key Points: US-India Trade Deal Cuts Tariffs, Prevents Major Job Losses

  • US tariffs cut from 50% to 18%
  • Deal prevents massive export losses
  • Averts risk of millions of job losses
  • Provides trade predictability
  • India gets better rate than Pakistan
2 min read

"Deal gives predictability and stability for US-India trade," says Foreign Affairs expert

US tariffs on India reduced from 50% to 18%, a move experts say prevents billions in export losses and safeguards millions of Indian jobs.

"This deal... gives predictability and stability for US-India trade and strategic relations going forward. - Robinder Sachdev"

New Delhi, February 3

Robinder Sachdev, Foreign Affairs Expert, lauded the US-India deal which lowered US tariffs on India to 18% from 50%.

Sachdev, in conversation with ANI, said that the deal is a good news for Indian economy as it provides predictability and stability for US-India trade.

"The news about tariffs on India being reduced to 18% from the 50% I think is definitely a welcome news for Indian economy. It's good news for jobs in India because every 1 % of tariff in America means about $1 billion loss of our exports and $1 billion export loss equates to about a 100,000 jobs. So if 50% tariff had continued for one year That would have meant that India would have lost around 50 billion dollars of exports to America and About 50 lakh jobs lost if not 50, 40 lakhs or 35 lakhs," he said.

"So bottom line is that this deal which has been announced today is welcome news for the economy for many households of India and also gives predictability and stability for US-India trade and strategic relations going forward," he added.

The deal gave India lower tariff rates than Pakistan. Under the Executive Order issued by US President Donald Trump on July 31, 2025, new reciprocal tariff rates were announced for Pakistan at 19%.

Meanwhile, External Affairs Minister S Jaishankar is set to hold talks with US Secretary of State Marco Rubio at the Department of State on Tuesday. The meeting is scheduled for 3:30 pm (US local time).

The meeting is part of Jaishankar's three-day visit to the United States, where he is participating in the inaugural Critical Minerals Ministerial on February 4, hosted by Washington.

Ahead of the ministerial, the US Department of State announced that Secretary Rubio will bring together partners from across the globe to strengthen cooperation on critical mineral supply chains.

The gathering will focus on enhancing international collaboration to secure reliable and resilient supply chains essential for economic and national security, technological leadership, and the energy transition.

Amid this visit, Jaishankar welcomed the recent India-US trade agreement, stating he "welcomed the announcements on bilateral trade."

- ANI

Share this article:

Reader Comments

R
Rohit P
Good step, but we must ensure the benefits actually reach the MSMEs and small-scale industries, not just the big corporates. The government should now focus on skill development to make our workforce ready for the export opportunities this creates.
A
Aman W
Interesting that our tariff is now lower than Pakistan's (18% vs 19%). While the deal is positive, we must be careful not to become overly dependent on any single market. Diversification is key for long-term stability.
S
Sarah B
As someone working in the textile export sector, this is a huge relief. The 50% tariff was crippling. This predictability will help us plan orders and investments for the next year. Hope this is a sign of more constructive engagement to come.
V
Vikram M
The focus on critical minerals in Jaishankar's visit is equally important. Trade isn't just about tariffs; it's about securing supply chains for future tech. A holistic approach is good to see.
K
Karthik V
While I welcome the deal, I have a respectful criticism. The expert's job loss calculation seems too simplistic and alarmist. The economy is more resilient. We should celebrate the win without unnecessary fear-mongering about what *could* have happened.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50