US extends suspension of reciprocal tariffs to Aug 1; relief to Indian exporters

Mint

08-07-2025

New Delhi Delhi, Jul 8 (PTI) The US has extended the suspension of its April 2 reciprocal tariffs until August 1, a move which provides relief to Indian exporters and additional time for New Delhi and Washington to resolve pending issues to finalise 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, on Monday, sent the first tranche of letters to various countries detailing the tariffs that the US will impose on products from those countries entering American markets from August 1.
Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Lao, Serbia and Tunisia are among the countries that received letters signed by US President Donald Trump.
"...based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266 until 12:01 a.m. Eastern daylight time on August 1, 2025," the White House has said.
This suspension was expiring on July 9.
On April 2, the US President announced reciprocal tariffs against a number of countries, including India (26 per cent), but paused the implementation of these duties for 90 days, giving all trading partners a July 9 deadline to negotiate and reach a trade deal with Washington.
Commenting on this decision, exporters said the deferment of the imposition of reciprocal tariffs from July 9 to August 1 reflects the US's willingness to engage constructively with its trading partners.
"It provides an extended window for dialogue, which can help our negotiators to sort out remaining contentious issues," Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
He said that the proposed tariffs, covering a dozen countries, may provide India more comparative advantage if it finalises a BTA (bilateral trade agreement) with the US , at least on goods, by the end of this month.
Another exporter said that the decision will give relief to the domestic industry here as the Indian official team has got some 12-13 more working days to talk to their US counterparts on the interim trade deal.
International trade expert Biswajit Dhar also said that it is a relief for India. "I see this as a relief for us and this response has come due to India taking a strong stand on certain issues."
FIEO President and Ludhiana-based engineering exporter said though this is a small relief, "we are keeping our fingers crossed".
Sharing similar views, Mumbai-based exporter and founder of Technocraft Industries (India) Sharad Kumar Saraf said that US President Donald Trump is "very unpredictable".
"The period of tariff suspension is very small. Indian exporters should explore new markets to increase exports," Saraf said.
India and the US are negotiating a bilateral trade agreement. They have set a deadline to conclude the first tranche by fall (September- October) this year. Before that, the two countries are looking to finalise an interim trade deal.
According to officials, India has already made its stand clear to the US authorities on the interim trade deal and the ball is now in Washington's court.
The US has been India's largest trading partner since 2021-22. In 2024-25, the bilateral trade in goods stood at USD 131.84 billion (USD 86.51 billion worth of exports, USD 45.33 billion of imports and USD 41.18 billion trade surplus).