The new trade deal between India and the United States could be operational from April 2026, as Commerce Minister Piyush Goyal has hinted. India-US bilateral trade is already above $190 billion and a target of $500 billion has been set by 2030. After the new agreement, the tariffs imposed by the US on Indian exports may be reduced from 50% to 18%, which will give a huge competitive advantage to exporters. India exports about $75–80 billion to the US every year, which can increase further. Farmers, fishermen and MSMEs can get special benefits from this deal. Know what long-term impact this trade agreement will have on India’s economy.

India has achieved a major victory in the global trade war. According to the research report of State Bank of India, after the new trade deal with the United States, the tariff rate on India has come down to 18%, while that on China remains at 37%. This will make Indian goods more competitive in the American market. Textile, leather and footwear sectors will get special benefits. The deal is reciprocal, in which the US will impose 18% tariffs on some Indian products, but remove duties on aircraft and auto parts. In return, India will reduce tariffs on American industrial and agricultural products. Besides, a target of purchasing 500 billion dollars in 5 years has also been set.

US Bangladesh Trade Deal: America has reduced the tax on goods coming from Bangladesh to 19 percent. This decision has been taken after the new trade agreement between the two countries. According to this agreement, if clothes are made in Bangladesh from raw materials made in America, then such clothes can be sent to America without any tax.

Interim Chief Advisor of Bangladesh Mohammad Yunus gave this information. He wrote on social media platform

Relief received after nine months of talks

This tariff reduction has happened after about nine months of negotiations between America and Bangladesh. Initially, in April, America had proposed to impose tax up to 37 percent on goods coming from Bangladesh. But after long negotiations, it was reduced to 20 percent in August last year. Now it has been further reduced to 19 percent. Yunus described this agreement as a big step towards saving jobs and strengthening Bangladesh’s place in the world textile market.

Who signed the agreement?

According to the government statement issued from Dhaka, the agreement was signed on behalf of Bangladesh by Commerce Advisor Sheikh Bashir Uddin and National Security Advisor Khalilur Rahman. On behalf of America, it was signed by US Trade Representative Ambassador Jameson Greer.

Greer praised Yunus and his team, saying they had done a good job in closing the deal. According to the statement, Greer said, “This agreement will further strengthen Bangladesh’s position in America’s trade policy.” The White House has also said that the two countries will also work together to remove non-tariff barriers existing in Bangladesh.

Big relief for textile industry

Bangladesh’s readymade garment industry is the backbone of its economy. More than 80 percent of the country’s total income comes from this sector. About 40 lakh people work in this industry, most of whom are women, who come from villages and poor families. This sector contributes about 10 percent to the country’s GDP.

People associated with the industry say that due to low tariff, Bangladeshi factories will be able to survive in the US market, which is one of the biggest markets for them. Many factories had come into trouble in the last few years. The reasons were increasing production costs, cost of electricity and fuel, fluctuations in currency prices and strict rules for foreign buyers. Earlier this month, US President Donald Trump had also signed a trade agreement with India, in which the tariff was reduced from 50 percent to 18 percent.

Agreement reached before elections

This trade agreement has taken place at a time when the environment in Bangladesh is very delicate. Elections are to be held in the country on Thursday. An interim government has been running there since August 2024, when former Prime Minister Sheikh Hasina left the country and went to India, where she is still. The situation has worsened before the elections. More than 40 people, including women, were injured in clashes between workers of different political parties on Wednesday night. The interim government wants to show before the elections that the country’s economy is stable and the government is trustworthy. Trade policy is being considered an important part in this.

India-US Trade Deal: Trade deal between India and America has been announced. Under this agreement, America has reduced the tariff on Indian goods from 50 percent to 18 percent. This could not have been a better time for Indian exporters. This is a news of great relief especially for the companies making garments, leather and footwear. These companies had just shipped their containers for the summer season and were worried about the next season. For the last few months, many small Indian companies had stopped exporting to America, while big companies were somehow saving their business by giving huge discounts.

Additional tariff will also be removed
Announcing this deal, US President Donald Trump said that the tariff on India has been reduced to 18 percent. Besides, the additional tariff of 25 percent imposed by India on purchasing Russian oil is also being removed. Trump said that Prime Minister Narendra Modi has agreed to stop purchasing Russian oil. According to a report in Times of India, officials say that India’s concerns have also been taken into account in this deal and America’s concerns have also been fully included.

Will India outweigh China and Bangladesh?
America is India’s largest trading partner and mutual trade between the two countries is worth 131.84 billion dollars. The most important thing is that India is in a trade surplus situation with America. Both the countries were negotiating a trade agreement since February last year and have set a target of taking mutual trade to $500 billion by 2030.

Indian goods more competitive in American market
After the trade deal, Indian goods have now become more competitive in the American market. For example, Indian garments will now attract 18 per cent tariff, whereas those from Bangladesh and Sri Lanka will attract 20 per cent tariff. Similarly, Indian carpet will also benefit. Indian carpet had to lose a lot of market share due to 50 percent tariff, but now it will be cheaper than Turkish carpet. Similarly, once again Indian shrimp will also become cheaper in the American market. Companies exporting gems and jewelery have also heaved a sigh of relief after this decision.

Competition with China and which sectors will be affected?
Now Indian goods will become cheaper in America as compared to China, because 34 percent tariff is imposed on most of the Chinese goods in America. However, tariffs on auto parts and metal will remain intact for now. The companies are still waiting for the complete details of this trade deal, because no joint statement has been issued on it. Meanwhile, India has also recently signed trade deals with the UK and the European Union, which will provide an opportunity to Indian exporters to further diversify their business.

Export figures and impact of previous tariffs
Between April and November, America’s exports from India increased by 11.3 percent to $59 billion. During this period, smartphone exports doubled to $16.7 billion. In August, 25 percent tariff was imposed on Indian goods and after that an additional 25 percent tariff was also imposed on buying oil from Russia. Many companies had already sent more goods to America to avoid this tariff. Apart from this, tariff was not applicable on about 40 percent of exports from India to America, which include electronics and pharma sectors.

Us tariff: US President Donald Trump announced a tariff on many countries of the world including India on 2 April. Since then, the situation of trade war has remained. Today again the US has decided to impose 104 percent tariffs on China’s electronic goods. After this decision, trade war has started between the two largest economy countries in the world.

Meanwhile, American trade representative Jamison Greer has given a big statement. He has claimed that countries like India, Argentina, Vietnam and Israel are planning to reduce the tariffs to be imposed on their behalf. His statement was given to the Finance Committee of the US Senate, in which he justified the trade policies of President Donald Trump.

According to Jamison Greer, these countries have expressed their desire to reduce the tariff by contacting the US administration. This means that if America reduces tariffs, then they will also follow this policy. Greer compared 5% tariffs imposed on agriculture on agriculture by the US to the average 39% agricultural tariff, saying that it shows how non-physical trade policies make a deficit deal for the US.

India’s changing trend over tariff
According to Greece, many countries including India are now working towards reducing the tariff by taking the policy of Tarmp’s tariff policy seriously. He said that about 50 countries have approached the members of the Trump administration. He has shown interest in getting business relations better with America. India is an important name in this list as it is a major business partner of America. Changes in such tariff policies will have a widespread impact on bilateral relations of the two countries.
Greece gave information through data
Through the data, Greece said that since 1994, the US has lost 5 million jobs and 90,000 factories. The agricultural sector, which was once an important part of the business, has now gone into losses. Such a situation has been seen especially during the last two years of Biden administration. All these changes are the result of unilateral tariffs, trade obstacles and foreign competitive policies, causing heavy damage to the US.

This is not only a business strategy but also a national security strategy
The Greece described the policy of Trump administration as not just a trade strategy but also a national security strategy. He said that many countries of the world are trying to improve their trade policies due to tariffs imposed by America. They are knowing that America will no longer remain inactive. We are demanding mutuality and fairness in business. Jamison Greer said that Donald Trump’s aggressive trade policies are now showing impact on global level.