New Delhi,Ā July 8: The US has extended the suspension of its April 2 reciprocal tariffs until August 1, a move which provides relief to Indian exporters and additional time for New Delhi and Washington to resolve pending issues to finalise an interim trade deal.India, which is negotiating a trade pact with the US, was not included in the list of countries that received tariff letters from the Trump administration on Monday.
The Trump administration, on Monday, sent the first tranche of letters to various countries detailing the tariffs that the US will impose on products from those countries entering American markets from August 1.
Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa, Bosnia and Herzegovina, Cambodia, Kazakhstan, Lao, Serbia and Tunisia are among the countries that received letters signed by US President Donald Trump.
āā¦based on additional information and recommendations from various senior officials, including information on the status of discussions with trading partners, that it is necessary and appropriate to extend the suspension effectuated by Executive Order 14266 until 12:01 a.m. Eastern daylight time on August 1, 2025,ā the White House has said.
This suspension was expiring on July 9.
On April 2, the US President announced reciprocal tariffs against a number of countries, including India (26 per cent), but paused the implementation of these duties for 90 days, giving all trading partners a July 9 deadline to negotiate and reach a trade deal with Washington.
Commenting on this decision, exporters said the deferment of the imposition of reciprocal tariffs from July 9 to August 1 reflects the USās willingness to engage constructively with its trading partners.
āIt provides an extended window for dialogue, which can help our negotiators to sort out remaining contentious issues,ā Federation of Indian Export Organisations (FIEO) Director General Ajay Sahai said.
He said that the proposed tariffs, covering a dozen countries, may provide India more comparative advantage if it finalises a BTA (bilateral trade agreement) with the US , at least on goods, by the end of this month.
Another exporter said that the decision will give relief to the domestic industry here as the Indian official team has got some 12-13 more working days to talk to their US counterparts on the interim trade deal.