India’s effective tariffs on US goods are lower than those of Sri Lanka, Thailand

India's tariff burden was lower than competing economies like Sri Lanka and Thailand

US President Donald Trump’s claim that India is a “tariff king” is not supported by comparative trade data. A Moneycontrol analysis shows that India’s effective tariff rates on US goods were lower than those imposed by Thailand and Sri Lanka, both of which have escaped with lower American duties.

In 2023, India imposed an average 6.1 percent tariff on US exports. Sri Lanka levied 8.4 percent and Thailand 6.9 percent, placing them ahead of India in terms of tariff burden on American goods, one of the reasons cited by Trump for a 25 percent tariff on Indian goods.

Despite this, starting August 7, Sri Lanka will face a 20 percent US import duty and Thailand 19 percent, both lower than the 25 percent plus yet to be specified Russia penalty imposed on India.

The effective tariff calculations exclude agriculture and automobile sectors, where Indian duties remain exceptionally high, sometimes exceeding 100 percent. These sectors have consistently attracted criticism from the US.

Many Asian economies maintain similarly high tariffs in some sensitive categories, limiting the uniqueness of India’s position.

By contrast, Vietnam, which imposed 2.9 percent tariffs on US goods, levied just 1 percent on global imports, creating a 1.9 percentage point escalation. Thailand, too, had a 2.9 percentage point differential, with 6.9 percent on US exports compared to 4 percent globally.