The United States has temporarily suspended [1] the additional 26% tariff on Indian imports for 90 days, offering relief to Indian exporters. The suspension, effective until July 9, 2025, was formalized through a White House executive order and is seen as a strategic move to facilitate ongoing bilateral trade negotiations between India and the US.
The tariff suspension follows President Donald Trump’s sweeping trade measures announced on April 2, which imposed universal duties on approximately 60 countries, including India. The additional levies were aimed at reducing the US trade deficit and strengthening domestic industries. India was among the nations hit with a steep 26% tariff, higher than rates applied to regional competitors such as Thailand, Vietnam, and China.
Despite the temporary relief, the 10% baseline tariff on Indian goods remains in effect, and duties on steel, aluminum, and auto components continue as planned. The suspension does not extend to China, including Hong Kong and Macau. Trade experts note that while the pause offers a crucial window for negotiations, Indian exporters must still navigate existing levies on key sectors.
Indian industry leaders have welcomed the decision, viewing it as an opportunity to push forward discussions on a bilateral trade agreement. Commerce and Industry Minister Piyush Goyal assured exporters that the government is actively working to finalize the agreement at the earliest. Meanwhile, the Federation of Indian Export Organisations (FIEO) emphasized the importance of securing long-term tariff reductions to maintain competitiveness in global markets.
As trade talks progress, stakeholders will closely monitor developments surrounding tariff policies, particularly in sectors like steel, which continue to face levies despite the temporary suspension. The next few months will be critical in shaping the future of India-US trade relations and determining the broader impact of these measures on Indian exports.
Sources:
[1] US suspends 26% tariff on India till July 9, baseline tariffs and steel levies remain: Report https://www.businesstoday.in/india/story/us-suspends-26-tariff-on-india-till-july-9-baseline-tariffs-and-steel-levies-remain-report-471601-2025-04-10