US Rolls Back Tariffs on Indian Goods, Boosting Exports and Industrial Growth

Ludhiana: In a massive win for northern India's industrial belt, the United States has rolled back its aggressive trade stance, slashing import tariffs on Indian goods from a staggering 50% to 18%.The announcement, made on Feb 2, following a high-level breakthrough between President Donald Trump and Prime Minister Narendra Modi, effectively ends a months-long trade standoff that had stalled orders and crippled margins for Ludhiana's exporters. For months, local manufacturers were forced to absorb steep costs or offer heavy discounts just to remain visible in the American market.The previous 50% tariff — a combination of a 25% reciprocal levy and a 25% penalty linked to Russian oil purchases — has now been replaced by a unified 18% rate."This is a game-changer," said Amit Thapar, a prominent city industrialist. "We were giving heavy discounts just to stay afloat. Now, we can withdraw those concessions and actively explore new opportunities to expand our business."The relief is expected to have an immediate ripple effect across Ludhiana's diverse manufacturing base. Fasteners industry, which saw orders dry up under the 50 percent regime, is poised for a rapid recovery."The US has always been a massive market for Indian fasteners. This resolution will stabilize both production and employment," said Narinder Bhamra, president of the Fastener Manufacturers Association of India.Small and medium enterprises (MSMEs) in the garment and hosiery sectors, which operate on thin margins, can now compete on price with regional rivals like Bangladesh and Vietnam. Beekeepers, particularly those exporting mustard honey, have been rescued from severe losses."Nearly 80% of our mustard honey goes to the US. This reduction brings a sense of relief to thousands of small beekeepers," noted Jatinder Sohi, president of the Progressive Beekeepers Association.The Strategic ShiftThe tariff cut comes with significant geopolitical strings attached. As part of the deal, India has agreed to halt its purchase of Russian oil, pivoting instead toward American and potentially Venezuelan energy sources. Badish Jindal, president of the World MSME Forum, emphasised the strategic importance of the move. "India's exports to the USA stand at approximately $86.5 billion. Slashing tariffs to 18 percent restores our price competitiveness against China and strengthens India's position as a reliable global supply-chain partner."With the "paperwork" expected to be finalised within 48 hours, Ludhiana's industrial hubs are already gearing up for a surge in production to meet resumed American demand.