US Extends Suspension of Tariffs on Indian Exports for Interim Trade Deal Negotiations
The US has extended the suspension of its reciprocal tariffs on Indian exports until August 1, providing relief to Indian exporters and time for negotiations on an interim trade deal.
US Extends Suspension of Tariffs on Indian Exports
The US has extended the suspension of its reciprocal tariffs on Indian exports until August 1, providing relief to Indian exporters and additional time for negotiations on an interim trade deal. India, which is negotiating a trade pact with the US, was not included in the list of countries that received tariff letters from the Trump administration on Monday. The Trump administration sent letters detailing the tariffs that the US will impose on products from various countries entering American markets from August 1.
Commenting on this decision, exporters said that the deferral of the imposition of reciprocal tariffs from July 9 to August 1 reflects the US's willingness to engage constructively with its trading partners. Exporters emphasized the importance of using this extended window for dialogue to resolve remaining contentious issues and potentially finalize a bilateral trade agreement with the US.
International trade experts also expressed relief for India and noted the unpredictable nature of US President Donald Trump's decisions. The period of tariff suspension is seen as an opportunity for Indian exporters to explore new markets and increase exports while negotiations for an interim trade deal continue.
India and the US are negotiating a bilateral trade agreement with a deadline to conclude the first tranche by fall this year. The ball is now in Washington's court to move forward with the negotiations on the interim trade deal.
The US has been India's largest trading partner since 2021-22, and in 2024-25, the bilateral trade in goods stood at USD 131.84 billion, including USD 86.51 billion worth of exports, USD 45.33 billion of imports, and a trade surplus of USD 41.18 billion.