In a significant policy shift, the US on April 10 temporarily paused the imposition of fresh tariffs on Indian imports for 90 days. The move, announced via White House executive orders, provides crucial relief to Indian exporters grappling with new trade barriers.
India and the United States have locked in the terms for the first stage of a long-awaited bilateral trade pact, with both sides eyeing a deal within 90 days, according to a Reuters report. The move signals renewed momentum in a relationship where two-way trade crossed $118 billion in 2023-24, making the US India’s biggest trading partner.
“We are far ahead in trade talks with the US compared to other countries… there are lots of possibilities in 90 days,” a senior official told Reuters, underscoring the pace of the discussions. Trade engagements will continue virtually and on a regular basis, the official added, hinting at a “win-win shape and form” to the deal soon.
In a significant policy shift, the US on April 10 temporarily paused the imposition of fresh tariffs on Indian imports for 90 days. The move, announced via White House executive orders, provides crucial relief to Indian exporters grappling with new trade barriers.
The suspension delays the application of reciprocal tariffs introduced on April 2 under Executive Order 14257. These were part of President Donald Trump’s broader effort to cut the US trade deficit and strengthen domestic industries. India was among the nations targeted with a steep 26 percent tariff—surpassing rates levied on regional peers such as Thailand, Vietnam, and China. The order now pushes back enforcement until July 9, 2025.
However, not all duties are off the table. Tariffs on steel, aluminium (since March 12), and auto components (from April 3) remain active, according to a trade expert cited by PTI. On the flip side, exemptions continue for key sectors like semiconductors, pharmaceuticals, and certain energy products.
Addressing industry leaders on April 9, Commerce and Industry Minister Piyush Goyal called for calm, urging exporters not to panic. The broader goal of the talks is ambitious: to lift bilateral trade to $500 billion by 2030, up from the current $191 billion. The first phase of the deal is expected to wrap up later this year.
Disclaimer: Moneywealth research provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
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