India-US Trade Deal: US Tariff Cut Puts India Ahead Of China, Pakistan, Bangladesh In Trade Race

The latest US trade deal has quietly reshaped Asia’s export pecking order, and India is the big gainer. With tariffs on Indian goods cut to 18 percent, New Delhi now enjoys a competitive edge over China, Pakistan and Bangladesh in the crucial US market. China continues to face steep duties, while South Asian competitors remain above India’s tariff level. For global buyers, this difference matters. Lower duties mean cheaper Indian goods and more predictable sourcing. The deal also aligns with Washington’s strategy to diversify supply chains beyond China. While questions remain over oil purchases and market access commitments, the immediate impact is clear. India has improved its trade positioning without dramatic concessions. As China faces pressure and neighbours struggle with scale and concentration risks, India’s growing manufacturing base suddenly looks more attractive. The tariff math has changed—and India stands to gain.