The US has extended the suspension of the reciprocal tariff of April 2 till 1 August. The move will provide relief to Indian exporters and New Delhi and Washington will get extra time to resolve pending issues to finalize the interim trade agreement.
India, which is talking on the trade agreement with the US, was not included in the list of countries receiving tariff letters from the Trump administration on Monday.
The Trump administration on Monday sent the first installment of letters to various countries, which describes tariffs on products of countries that will enter US markets from August 1.
Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herjegovina, Cambodia, Kazakhstan, Laos, Serbia and Tunisia include countries that have received letters signed by US President Donald Trump.
The White House has stated, “Based on additional information and recommendations received from various senior officials, including information about the status of discussion with business partners, it is necessary and appropriate to increase the suspension implemented by Executive Order 14266 by 12:01 pm on August 1, 2025 at the Eastern Daylight time at 12:01 pm.”
Please tell that this suspension was ending on 9 July. On April 2, the US President announced a mutual tariff against several countries, including India (26 percent), but stopped the implementation of these fees for 90 days, and all trading partners gave the July 9 deadline to interact with Washington and reach the business agreement.
Commenting on this decision, exporters said that postponing mutual fees from July 9 to August 1 reflects the US desire to constructively associate with its business partners.
Ajay Sahai, Director General of the Indian Export Organization Federation (Fio) Ajay Sahai said, “This provides an extended opportunity for dialogue, which can help our dialogues resolve the remaining controversial issues.”
He said that the proposed tariff, including a dozen countries, can provide comparatively more benefits to India if it finally finalizes bilateral trade agreement (BTA) on the minimum goods with the US.
Another exporter said that this decision will provide relief to the domestic industry, as the Indian official team has received 12-13 additional working days to talk to their US counterparts on the interim trade agreement.
International trade expert Vishwajit Dhar also said that it is a matter of relief for India. He said, “I consider it a matter of relief for myself and this response has come due to India taking a tough stance on some issues.”
FIEO President and Ludhiana -based engineering exporter said that although this is a small relief, “but we are expecting.”
Sharing a similar views, Sharad Kumar Saraf, a Mumbai -based exporter and founder of Technocraft Industries (India), said US President Donald Trump is “very unpredictable”.
Saraf said, “The duration of the fee is very short. Indian exporters should find new markets to increase exports.”
India and the US are negotiating on bilateral trade agreement. He has set a deadline to complete the first phase by this year’s autumn (September-October). Before that, the two countries are trying to finalize the interim trade agreement.
According to officials, India has already made its stand clear to the US officials on the interim trade agreement and the ball is now in the court of Washington.
America has been India’s largest trading partner since 2021-22. In 2024–25, bilateral trade of goods was US $ 131.84 billion (exports of US $ 86.51 billion, import of US $ 45.33 billion and trade surplus of US $ 41.18 billion).
