Pakistan, Bangladesh among 50 countries now with lower US tariffs than India

The new tariffs are set to come into effect on August 7.

Even Pakistan, with whom the US has announced a trade deal, will have lower tariffs set at 19 per cent. Trump had said that Pakistan and the US would work together on developing large Pakistani oil reserves. However, Pakistan has seen a number of unsuccessful oil exploration attempts.

Moreover, Vietnam at 20 per cent, and Malaysia, Indonesia and the Philippines at 19 per cent each, are Association of Southeast Asian Nations (ASEAN) countries that have also been assigned lower tariffs, potentially giving them better market access in the US in the electrical and electronics sectors compared to India.

While lower duties on Bangladesh and Pakistan could impact India’s RMG exports to the US, a beneficial duty structure for Vietnam and Malaysia is expected to hurt India’s fast growing non-leather footwear manufacturing along with the electronics manufacturing sector.

This comes after White House economic adviser Kevin Hassett on Wednesday said Trump has been frustrated with how trade talks with India are progressing. “I think President Trump is frustrated with the progress we’ve made with India but feels that a 25 per cent tariff will address and remedy the situation in a way that’s good for the American people,” Hassett said, as per Reuters.

The notification said that some trading partners that have agreed to, or are on the verge of concluding, meaningful trade and security agreements will remain subject to the fresh duties announced “until these agreements are finalised and subsequent orders are issued”.

The India-US trade deal is stuck over sensitive sectors such as agriculture and automobiles. The Indian Express had reported last week that India is unlikely to agree to US demands during the ongoing trade negotiations to accept genetically modified (GM) agricultural products such as corn and soya.

This assumes significance as agriculture remains one of the contentious issues between the two countries, and the United States Trade Representative (USTR) has previously flagged restrictions on its GM products by countries as discriminatory.

“The Food Safety and Standards Act of 2006 includes specific provisions for regulating food products derived from genetically engineered (GE) sources; however, as of 31 December 2024, the FSSAI was still in the process of establishing its regulations. India’s biotechnology approval processes are slow, opaque, and subject to political influences, and do not appear to take into account science-based approval processes for GE products in exporting countries,” the USTR report earlier this year had said.

While India is seeking greater market access for its textiles, leather and footwear, the US is pushing for access to India’s agricultural and dairy markets — a major hurdle, as Indian farmers often operate on small land parcels with limited technological support. In contrast, the US has demanded that India drop its GM regulation.