US may impose lower tariffs on India as compared to other Asia-Pacific countries: Report

Imports from Thailand and Cambodia will be taxed at 36 per cent, and from Bangladesh and Serbia at 35 per cent.

India could emerge as a major beneficiary of the United States’ latest tariff policy as Washington may impose lower tariffs on India compared to several other countries in the Asia-Pacific region, according to a report by Arihant Capital.

The report highlighted that India is in a favourable position to attract more foreign investment and strengthen its manufacturing capabilities as global trade flows begin to shift. The report stated, “US may impose lower tariffs on India compared to many other APAC countries, positioning India to attract more investment.”

While countries like Cambodia and Vietnam faced higher tariffs, India could benefit from trade and investment redirection, supported by ongoing bilateral agreements. The report also pointed out that recent trade developments, such as the signing of the UK-India Free Trade Agreement in May and the ongoing negotiations with the European Union, are expected to boost India’s position as a global manufacturing hub. However, the report cautioned that the US government’s push to reshore key manufacturing sectors may limit the overall benefits for India.

On Wednesday, US President Donald Trump announced a new list of tariffs targeting 14 countries. Products from Algeria, Libya, Iraq, and Sri Lanka will face a 30 per cent tariff, while Brunei and Moldova will see a 25 per cent tariff. Goods from the Philippines will attract a 20 per cent tariff. Brazil has been hit the hardest, with a steep 50 per cent punitive tariff, especially on copper. President Trump recently extended the tariff implementation deadline to August 1.

In the meantime, he has sent formal letters to the governments of the affected countries, informing them of the specific tariff rates that will apply. On July 8, Trump shared letters sent to Japan’s Prime Minister Shigeru Ishiba and South Korea’s President Lee Jae-myung, stating that both countries would face a 25 per cent tariff from August 1. He later confirmed that similar letters had been sent to Malaysia and Kazakhstan, which will also face 25 per cent tariffs.

According to the letters, Myanmar and Laos will face a 40 per cent tariff, while Indonesia will be subject to a 32 per cent tariff. Imports from Thailand and Cambodia will be taxed at 36 per cent, and from Bangladesh and Serbia at 35 per cent. South Africa and Bosnia and Herzegovina will see 30 per cent tariffs, and Tunisia will face a 25 per cent rate. The report noted that India’s relatively better treatment under the new US tariff regime could serve as a significant opportunity for the country to attract companies to set up units in India. (ANI)

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