US Tariffs on Indian Chemicals Drop to 18%, Boosting Exports and Aarti Industries

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CNBC TV18•03-02-2026, 11:48
US Tariffs on Indian Chemicals Drop to 18%, Boosting Exports and Aarti Industries
- •US tariffs on Indian specialty chemical exports have been reduced from over 50% to 18% following a historic trade agreement finalized on February 2.
- •This reduction significantly benefits Indian chemical makers, with the US accounting for nearly $6 billion (20%) of India's total chemical exports.
- •Aarti Industries, which earns 17-18% of its revenue from the US, expects a tremendous boost, as 40% of its export volumes previously faced the highest duties.
- •The new tariff structure gives India a competitive edge over China in the US market, potentially leading to higher export volumes for Indian chemicals.
- •Policy certainty from the agreement is also crucial, unblocking delayed investment decisions and customer engagements for companies like Aarti Industries.
Why It Matters: Reduced US tariffs to 18% significantly boost Indian specialty chemical exports, enhancing competitiveness against China.
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