New Delhi, Apr 11 (KNN) The United States has suspended additional tariffs on Indian goods for a period of 90 days, until July 9, 2025, as per an executive order issued by President Donald Trump.
The move temporarily halts a 26 per cent import duty imposed on Indian exports under the April 2 Executive Order 14257, which had introduced steep reciprocal tariffs aimed at reducing the US trade deficit.
The temporary relief, however, excludes China, Hong Kong, and Macau. A baseline 10 per cent tariff will continue to apply to all countries, including India.
The decision brings relief to Indian exporters of shrimp, steel, and other goods. The Federation of Indian Export Organisations (FIEO) welcomed the move, noting it gives time for ongoing talks on a proposed bilateral trade agreement (BTA).
“We have been assured by the commerce ministry that the agreement will be finalised at the earliest,” said FIEO President S C Ralhan.
Trade experts highlighted that duties on steel, aluminium, and auto components remain in force. However, exemptions apply to sectors like semiconductors, pharmaceuticals, and certain energy products.
Commerce and Industry Minister Piyush Goyal urged exporters to stay calm and highlighted that India is proactively working to secure favourable trade terms.
The two nations aim to double their bilateral trade to USD 500 billion by 2023, from the current USD 191 billion.
The US remains India’s largest trading partner, accounting for 18% of India’s exports. China ranks second, though India runs a significant trade deficit with Beijing.
The 90-day suspension is seen as a diplomatic opening, offering both nations a window to fast-track negotiations and address longstanding trade concerns.
(KNN Bureau)
