Ease of doing business
theboardiQ Tariffs Dashboard:
Powering Mutually Beneficial Global Trade.
Understand the complexities of international tariffs and ease of doing business across nations to cultivate balanced trade relationships, streamline operations, and deliver cost savings to end consumers.
Implications
The U.S. tariff environment for India has significantly escalated, with the current total tariff rate on most Indian goods reaching 50%. Formal trade deal negotiations have been postponed due to the high duties.
Here is an update on US Tariffs, Deals, and Company Impact for India as of October 2025:
US Tariffs on India
Tariff Type | Ad Valorem Rate (Implemented) | Basis / Details |
Reciprocal Tariff | 25% | Part of the broader "reciprocal tariff" structure on countries with a large trade deficit or a lack of reciprocal trade terms. |
Secondary Tariff | 25% | An additional penalty duty imposed in response to India's continued imports of oil from Russia. |
Total Effective Tariff | 50% on most goods | This cumulative rate applies to a wide range of goods imported from India. |
Deals and Agreements Status
Bilateral Trade Agreement: Indefinitely Postponed. The latest formal round of negotiations for a Bilateral Trade Agreement (BTA) was scheduled for August 2025 but was postponed due to the imposition of the 50% tariffs. Dialogue continues, but a deal is not imminent.
India-UK Trade Deal: Signed/Pending Ratification. In response to the U.S. tariffs, India has been actively diversifying its trade partnerships. A new trade deal with the United Kingdom was signed, which includes eliminating tariffs on 99% of Indian exports to the UK. This is seen as an effort by India to secure alternative markets.
Companies and Industry Impact
The punitive tariffs are broadly affecting U.S. businesses that rely on supply chains in India, as well as Indian export-oriented sectors.
Sector/Industry | Impact in the U.S. | Impact in India |
Pharmaceuticals (Generic Drugs) | Shelved Tariff Relief. The White House reportedly shelved plans to impose tariffs on generic drugs (non-patented) due to concerns from U.S. officials that it would raise prices and cause shortages for American consumers. India supplies approximately 47% of all generic prescriptions in the U.S. | Continued High Stakes. Indian generic drug companies (like Cipla, Sun Pharma, Dr. Reddy's) are relieved but remain wary of new proposed 100% tariffs on patented drugs from companies without a U.S. manufacturing presence. |
Textiles, Apparel, & Furniture | Rising Costs. U.S. retailers (e.g., Walmart, Costco, Gap) that source goods from India are facing increased costs, which are being passed on to American consumers. | Severe Hit. This labor-intensive sector is considered one of the worst-affected, with analysts predicting a massive drop in exports and fears that Indian exporters will lose business to rivals like Vietnam and Bangladesh. |
Gems and Jewellery | Supply Chain Disruption. U.S. jewelry retailers and dealers face disruptions and inflated costs for inputs. | Severely Impacted. The U.S. is a major market ($10 billion+ in exports), and the 50% tariff is placing immense pressure on the entire value chain. |
US Manufacturers | Higher Input Costs. American firms that rely on India for key inputs in sectors like semiconductors, healthcare components, and energy are facing higher costs, which a group of U.S. lawmakers warned could undermine their competitiveness. | N/A |
Political Context
A bipartisan group of over 20 U.S. lawmakers recently sent a letter to President Trump urging him to "reset and repair" the relationship with India by reviewing the tariff policy. They argued that the punitive tariffs are:
Raising prices for U.S. consumers and damaging American supply chains.
Risking pushing India, a key partner in countering China via The Quad, closer to countries like China and Russia
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.
Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |