Trump's Tariff Cut Boosts Indian Exports

US President Donald Trump's decision to reduce tariffs on Indian imports from 50% to 18% is expected to boost Indian exports. This move, in exchange for India reducing its trade barriers and halting Russian oil imports, aims to restore India's competitiveness in the US market.

In a significant development, US President Donald Trump announced a reduction in tariffs on Indian imports from a steep 50% to a much-lower 18%. This decision is perceived to be a boon for Indian exporters, potentially revitalizing export markets previously hindered by high costs.

Indian Finance Minister Nirmala Sitharaman expressed optimism regarding this move, stating that Indian exports will now have the opportunity to regain traction in the US market. The new tariffs align with those imposed on other Asian countries, marking a competitive advantage for India against regional players like Vietnam and Bangladesh.

This tariff reduction comes with a broader agreement under which India will cease purchasing Russian oil, while increasing its US imports across various sectors. This holistic trade approach is expected to deepen US-India economic ties and restore favorable trade balances.

(With inputs from agencies.)