How US Tariffs On India Stack Up Against Asian Peers

As the Aug. 1 deadline looms, US President Donald Trump has declared a 25% tariff on Indian goods, escalating trade tensions and signalling further deterioration in bilateral ties.

The announcement, made via Trump's Truth Social account, also included a penalty for its ongoing purchases of Russian military hardware and energy.

This latest move places India in the company of several other Asian economies facing steep levies under Trump's evolving trade doctrine.

The 25% tariff on India, though lower than the 51% currently applied to China, is among the highest imposed without a bilateral agreement in place. India's close defence and energy ties with Russia appear to have aggravated the situation. With no immediate trade pact on the horizon and a global shift away from Russian influence, the penalty reflects both economic and strategic pressure.

China Faces Highest Tariffs Among Asian Peers

China remains the principal focus of Trump's protectionist stance. Chinese goods face a staggering 51% total tariff burden, while American exports to China are hit with average duties of 32.6%. The China tariffs have already triggered widespread supply chain shifts and contributed to global market uncertainty.

Vietnam: Relatively Protected

Vietnam has emerged relatively unscathed from Trump's tariff wave. In early July, the US administration agreed to a 20% tariff on goods made in Vietnam, alongside a harsher 40% levy on items suspected of being transshipped from countries like China.

Indonesia

Indonesia secured what Trump described as a "great deal", culminating in a 19% tariff — a reduction from the previously planned 32% levy. Moreover, the US has pledged “full access” to the Indonesian market with no reciprocal duties.

Japan: Strategic Ally Status

Japan, a key US ally, agreed to a deal that sets import tariffs at a modest 15%. In exchange, Tokyo has pledged a massive $550 billion investment into the American economy.

Malaysia, Sri Lanka: Heavier Tariffs

Malaysia is facing the same 25% levy as India. Meanwhile, Sri Lanka has been slapped with 30% tariffs, placing it among the hardest hit in the region.

Philippines: Asymmetric Agreement

Trump described his trade agreement with the Philippines as a breakthrough, giving American goods “zero-tariff” entry while subjecting Philippine exports to a 19% duty. This reflects a broader pattern of imbalanced bilateral deals favouring US exporters.

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