Donald Trump tariffs: Relief for Indian exporters as US delays deadline; interim trade deal talks continue

The United States has extended the suspension of its April 2 reciprocal tariffs until August 1, offering Indian exporters a temporary reprieve and giving negotiators more time to resolve pending issues under an interim trade deal.India, which is in advanced talks with Washington to secure a bilateral trade agreement, was notably absent from the list of countries that received tariff notification letters on Monday. The Trump administration issued these letters to over a dozen nations, including Japan, South Korea, Bangladesh, Malaysia, and South Africa, saying that new tariffs will take effect from August 1.The White House said the decision to defer implementation was taken "based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners." The earlier suspension, announced through Executive Order 14266, was to expire on July 9.India had been listed among countries targeted for reciprocal tariffs, set at 26%, in the original April 2 announcement. However, a 90-day window was provided to allow trading partners to negotiate potential resolutions. The new extension offers around three more working weeks for dialogue.Exporters in India welcomed the move. "It provides an extended window for dialogue, which can help our negotiators to sort out remaining contentious issues," said Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), as per news agency PTI. He added that the imposition of tariffs on other countries could also offer India a comparative trade advantage if it finalises a goods-focused bilateral trade agreement by the end of July.Experts echoed similar sentiments. “I see this as a relief for us and this response has come due to India taking a strong stand on certain issues,” said international trade expert Biswajit Dhar.Mumbai-based exporter Sharad Kumar Saraf, however, remained cautious and was quoted as saying by PTI, "The period of tariff suspension is very small. Indian exporters should explore new markets to increase exports.” He added that US President Donald Trump is "very unpredictable."India and the US aim to finalise the first tranche of their bilateral trade pact by September or October, with officials confirming that India's position on key issues has already been conveyed to Washington. "The ball is now in their court," a government official said.The US has been India’s top trading partner since 2021-22. In 2024-25, bilateral trade in goods stood at $131.84 billion, including $86.51 billion in exports and $45.33 billion in imports, yielding India a surplus of $41.18 billion.