Trade data shows India’s tariff on U.S. imports averages below 5%, countering high-duty claims

New Delhi, July 31, 2025 India has pushed back against recent global claims labeling it the “tariff king,” presenting trade data that shows a far more moderate duty structure on imports from the United States.

According to officials and data reviewed from the World Trade Organization (WTO), while India’s average tariff across all imports is 18.1%, the average applied on American goods is significantly lower just 4.2%. This applies to the top 100 U.S. exports to India, which account for around 75% of total shipments.

The Indian government contends that higher tariff rates on select categories like dairy products, fruits, cereals, and alcoholic beverages are exceptions rather than the rule. These protections, they argue, are aligned with WTO norms and are mirrored by other countries, including the U.S., which also imposes substantial duties on categories such as tobacco, whiskey, and wine.

Further highlighting discrepancies, Indian authorities noted a reporting gap in bilateral trade figures. For instance, in 2024, the U.S. claimed $87.4 billion in imports from India, while India recorded only $80.7 billion in exports to the U.S. a difference of $6.7 billion. This gap, officials suggest, may stem from differences in shipment valuation methods and customs data reporting.

Government sources also pointed to the fact that other developed nations have far higher tariffs in sensitive sectors. South Korea, for example, levies an 887% tariff on rice, and Japan maintains strict duties on various agricultural goods.

Trade analysts believe the “tariff king” label oversimplifies a more nuanced reality. “India does have protective tariffs in some areas, but overall, it offers competitive market access — especially to U.S. exporters,” said a senior commerce ministry official. As global trade dynamics remain tense, New Delhi emphasizes that it continues to follow WTO commitments while supporting domestic industries in critical sectors.

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