United States President Donald Trump has signed an executive order reimposing reciprocal tariffs ranging from 10% to 41% on US imports from dozens of countries and foreign locations in advance of this 1st August deadline to strike trade deals.
The new tariff rates have dealt a harsh blow to India’s export prospects, since the rates for its competitors are now lower than the tariffs imposed on the country.
The reciprocal tariff rate for Bangladesh has been reduced from 35% to 20%, while the rates for Vietnam (20%), Cambodia (19%), Indonesia (19%) and Sri Lanka (20%) remain the same as they were after their negotiations with the US. China, on the other hand, has a tariff rate of 30%, even as both countries are still in negotiations.
The new tariff regime will not go into effect Friday, 1st August, as expected. Instead, the tariffs will be implemented on 7th August to give the US’s Customs and Border Protection sufficient time to make the necessary changes to collect the new duties.
The new rules will apply to goods imported into the US starting seven days after the order is issued, from 12:01 am (Eastern Time) onwards i.e. from 1st August. However, if the products were already on a ship and headed to the US before that time, and they arrive and clear customs before 5th October 2025, they won’t face the new extra duty, according to the White House communique.
However, experts say, even with higher tariffs, India still has an advantage in textiles and apparel because of its strong skills in knitwear. Its technique, craftsmanship, and ability to produce in large volumes make it a preferred choice for knitwear imports.
It is also worth noting that negotiations between India and the US have not yet been concluded, with another round of negotiations to take place sometime in late August. This last round of negotiations between India and the US seems to be hopeful in getting a consensus on a preferred tariff rate for the country.
| Countries and Territories | Reciprocal Tariff, Adjusted |
| Afghanistan | 15% |
| Algeria | 30% |
| Angola | 15% |
| Bangladesh | 20% |
| Bolivia | 15% |
| Bosnia and Herzegovina | 30% |
| Botswana | 15% |
| Brazil | 10% |
| Brunei | 25% |
| Cambodia | 19% |
| Cameroon | 15% |
| Chad | 15% |
| Costa Rica | 15% |
| Côte d`Ivoire | 15% |
| Democratic Republic of the Congo | 15% |
| Ecuador | 15% |
| Equatorial Guinea | 15% |
| European Union: Goods with Column 1 Duty Rate[1] > 15% | 0% |
| European Union: Goods with Column 1 Duty Rate < 15% | 15% minus Column 1 Duty Rate |
| Falkland Islands | 10% |
| Fiji | 15% |
| Ghana | 15% |
| Guyana | 15% |
| Iceland | 15% |
| India | 25% |
| Indonesia | 19% |
| Iraq | 35% |
| Israel | 15% |
| Japan | 15% |
| Jordan | 15% |
| Kazakhstan | 25% |
| Laos | 40% |
| Lesotho | 15% |
| Libya | 30% |
| Liechtenstein | 15% |
| Madagascar | 15% |
| Malawi | 15% |
| Malaysia | 19% |
| Mauritius | 15% |
| Moldova | 25% |
| Mozambique | 15% |
| Myanmar (Burma) | 40% |
| Namibia | 15% |
| Nauru | 15% |
| New Zealand | 15% |
| Nicaragua | 18% |
| Nigeria | 15% |
| North Macedonia | 15% |
| Norway | 15% |
| Pakistan | 19% |
| Papua New Guinea | 15% |
| Philippines | 19% |
| Serbia | 35% |
| South Africa | 30% |
| South Korea | 15% |
| Sri Lanka | 20% |
| Switzerland | 39% |
| Syria | 41% |
| Taiwan | 20% |
| Thailand | 19% |
| Trinidad and Tobago | 15% |
| Tunisia | 25% |
| Turkey | 15% |
| Uganda | 15% |
| United Kingdom | 10% |
| Vanuatu | 15% |
| Venezuela | 15% |
| Vietnam | 20% |
| Zambia | 15% |
| Zimbabwe | 15% |
