India is not a tariff king: Its tariffs on US exports are among the lowest; Here’s the data
India is not a tariff king; its tariffs are much lower than countries like Vietnam, Indonesia, and the EU. US President Donald Trump has repeatedly claimed that India maintains the “highest tariffs in the world”. However, data reveals that India’s weighted tariff stands at just 4.6%. This is lower than the EU’s 5%, Vietnam’s 5.1%, and Indonesia’s 5.7%, and far below Bangladesh’s 10.6%.
Trump’s remarks, made in a series of public statements over the past few weeks, accuse India of maintaining “obnoxious” trade barriers, often highlighting its defense ties with Russia. On July 30, Trump imposed a 25% tariff on a wide range of Indian exports, citing these very trade issues. He reiterated in a CNBC interview, “India has not been a good trading partner…they have the highest tariff of anybody.” Trump’s statement, however, is not supported by facts.
The reality is India’s tariffs have drastically fallen over the past three decades, from 56% in 1990 to a current 4.6%. This 90% drop in tariffs highlights India’s commitment to liberalising its economy. India’s tariffs on US exports are among the lowest globally, with over 45% of US exports facing tariffs under 5%, and many falling below 10%.
Major US exports like crude oil, LNG, industrial machinery, and pharmaceuticals enjoy relatively low tariffs in India. For example, crude oil and LNG face minimal tariffs of Rs 1.1 per tonne and 2.75%, respectively. Aircraft and parts are charged just 2.5%, while pharmaceuticals see a tariff range from 0 to 7.5%.
India’s market access is also more favorable than many other countries in Asia. US exporters face lower or similar tariffs in India compared to markets like China, Vietnam, or South Korea. For instance, India’s electronics and tech tariff stands at 10.9%, higher than Vietnam’s 8.5%, but significantly lower than China’s 5.4%. Similarly, India’s tariffs on dairy and agriculture products are competitive globally, with India’s 33% lower than Japan’s 61.3% and South Korea’s 54%.
In 2025, India has even reduced tariffs on specific US-focused products. For example, motorcycles with engines up to 1600cc saw a 10% reduction in tariffs, from 50% to 40%. Similarly, bourbon whiskey’s tariff has decreased from 150% to 100%, and fish hydrolysate’s tariff fell from 15% to 5%.
Trump’s claims of India being a tariff king are not only misleading but also ignore the broader global context. Countries with similar or higher income levels, such as Brazil (11.2%) and Turkey (16.2%), maintain higher average tariffs. India’s tariff policies are in line with global practices, reflecting its stage of economic development.
Additionally, Trump’s argument regarding India’s trade relationship with Russia also lacks context. The US itself imposes high tariffs on several goods, including a 197.04% tariff on sour cream and 183.87% on tobacco. It is important to note that agriculture protection through tariffs is a global norm, and India’s agriculture tariffs (39%) are competitive when compared to countries like Switzerland (28.5%) and Japan (57%).
Source: www.businesstoday.in