New Delhi | Feb 4,2026 | SKY LINK TIMES
US Cuts Tariffs to 18 percent:
Experts and industry leaders have welcomed the United States’ decision to reduce tariffs on Indian imports and exports to 18 per cent, calling it a significant step that will strengthen bilateral trade and provide much-needed relief to India’s textile industry.
The move, announced amid growing trade engagement between the two countries, rolls back earlier punitive duties and is expected to revive export momentum across key sectors.
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Experts See Strong Trade Upside
Agricultural economist Dr R.S. Ghuman said the tariff reduction aligns better with global trade norms under the World Trade Organisation (WTO) framework.
“Such high tariffs should ideally not be imposed as they restrict the potential of bilateral trade,” Ghuman said.
“With tariffs now reduced to 18 per cent, the decision is expected to significantly benefit import and export activities between the two countries.”
He added that the move would provide fresh momentum to trade flows and boost overall business activity between India and the US, one of India’s largest trading partners.
Agricultural Trade Implications
While welcoming the decision, Dr R.S. Ghuman cautioned that quality standards and product coverage would need close monitoring going forward.
He pointed out that dairy products and certain agricultural commodities have been kept outside the current arrangement.
“India is a global leader in rice exports, which is closely linked to the Minimum Support Price (MSP) system,” he noted.
According to him, the tariff cut could also have broader implications within the global trade framework, even as India stands to gain substantially in the short to medium term from improved market access.
Textile Industry Calls It a ‘Lifeline’
The textile sector, one of India’s largest employment generators and export earners, has reacted especially positively to the announcement.
Selvaraj, Secretary General of the Southern India Mills’ Association (SIMA), described the rollback of the earlier 50 per cent punitive tariff to 18 per cent as a “lifeline” for the industry.
“This new tariff rate is currently the lowest among competing export nations, restoring India’s global competitiveness,” told Selvaraj.
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Diplomatic Efforts Pay Off
Selvaraj expressed gratitude to the Prime Minister and the Union Ministers for Commerce and Textiles, crediting their sustained diplomatic engagement for securing the reduced tariff rate.
He also highlighted that recent trade agreements with the UK and European nations, along with supportive measures announced in the Union Budget 2026–27, have significantly strengthened industry confidence.
According to industry leaders, the tariff reduction could lead to higher export orders, improved capacity utilisation, and greater employment opportunities across textile hubs in Tamil Nadu, Gujarat, Maharashtra, and other states.
What Lies Ahead
With the US tariff cut now in place, experts believe India is well-positioned to expand its footprint in the American market, particularly in textiles, apparel, and select manufactured goods.
While challenges remain in agriculture and quality compliance, the overall sentiment suggests the move could mark a turning point in India–US trade relations, reinforcing India’s position as a competitive global supplier.
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