New Delhi, May 13 -- A new trade agreement between the United States and China to significantly reduce tariffs has cast uncertainty over India's recent export and manufacturing gains.

The US will now lower tariffs on Chinese imports from 145 per cent to 30 per cent, while China will cut duties on American goods from 125 per cent to 10 per cent.

This sharp revision narrows the tariff gap that had briefly favoured India. Previously, Indian exports to the US faced a lower additional tariff of 26 per cent, compared to China's 145 per cent, encouraging manufacturers-like Apple-to shift production to India.

Currently, Indian goods face only a 10 per cent baseline duty, after Washington paused the 26 per cent reciprocal tariff for 90 days.

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