Key Highlights:
- Tariff suspension extended to August 1 – temporary relief for Indian exporters.
- India excluded from latest tariff letters – signs of positive US-India engagement.
- Negotiation window extended – critical for finalizing interim trade deal.
New Delhi: The United States has extended the suspension of its proposed 26 percent reciprocal tariffs on Indian goods until August 1, offering much-needed relief to Indian exporters. This move gives India extra time to negotiate an interim trade deal with the US.
The tariff suspension was originally set to expire on July 9, but the White House said the pause will continue based on recommendations from senior officials and updates on ongoing trade discussions.
The April 2 tariff announcement had included India, but implementation was delayed by 90 days to allow time for negotiations. With the latest extension, India now has about 12–13 more working days to settle differences with Washington.
India Left Out of Latest Tariff Letters
On July 7, President Donald Trump sent letters to multiple countries announcing 25 percent tariffs starting August 1. Countries like Japan, South Korea, Indonesia, and Bangladesh received these letters, but India was not among them.
This exclusion is being seen as a positive sign that the US is willing to continue dialogue with India before taking action.
Exporters Welcome the Extension
Exporters in India have welcomed the decision, saying it gives negotiators more time to resolve key issues. Ajay Sahai, Director General of FIEO, said-It provides an extended window for dialogue, which can help sort out the remaining contentious issues.
Trade expert Biswajit Dhar also called the move a relief, crediting India’s firm stance during the talks.
However, exporters remain cautious. Sharad Kumar Saraf, founder of Technocraft Industries, said- Trump is unpredictable. Indian exporters should explore new markets as a backup.
India–US Trade at a Glance
- The US has been India’s top trading partner since 2021–22.
- In 2024–25, total goods trade was USD 131.84 billion.
- India exported USD 86.51 billion and imported USD 45.33 billion, resulting in a USD 41.18 billion trade surplus.
(With PTI Inputs)
