New Delhi, Feb. 2 -- The customs duty rejig announced in the Union budget for FY26 lowers India's average customs duty rate sharply from 11.65% to 10.66% and sends a positive signal to India's trading partners like the US, Central Board of Indirect Taxes and Customs (CBIC) Chairperson Sanjay Kumar Agarwal said in a post-budget interview.

The comments come as a trade war erupted between Canada, Mexico and China on the one hand and the US on the other over President Donald Trump's move to impose punishing tariffs on them and other countries with which the US has a trade deficit.

The budget presented by finance minister Nirmala Sitharaman on Saturday brought down the import duty on motorcycles and recast the duty structure applying to cars...