Trump has extended the suspension of tariffs on India until 1 August 2025. The US had announced a 26% additional tariff on several countries, including India, on 2 April 2025.
Trump Tariff Policy: India has received temporary relief from the impact of America's proposed tariffs. US President Donald Trump recently sent letters to nearly 20 countries to impose increased tariffs, but India has been excluded from this list. This is a significant relief for Indian exporters, particularly in the textile, pharmaceutical, auto parts, and IT sectors, a large portion of whose business depends on American markets.
On 2 April 2025, the US announced an additional 26% tariff on several countries, including India, but this was postponed for 90 days. This exemption has now been extended until 1 August 2025, giving India more time to finalise a trade agreement with the US. White House Press Secretary Caroline Levitt stated that President Trump will sign an executive order in this regard.
There are signs of positive progress in the ongoing trade talks between India and the US. Trump stated that he is close to a trade agreement with India, although some disagreements remain in the dairy and agricultural sectors. According to sources, both countries have reached an agreement on a mini trade deal, although a formal announcement is yet to be made.
Experts believe that India's exclusion from this list is a result of strong diplomatic and trade relations between the two countries, despite America's 'America First' policy. However, Trump has warned that the tariff exemption will not be extended beyond 1 August, necessitating India to finalise the agreement as soon as possible.
Meanwhile, tariffs ranging from 20% to 30% have been imposed on countries like Japan, South Korea, Iraq, and Bangladesh. This relief for India may be temporary, and experts say that if the trade agreement is not completed on time, India may also face tariffs in the future. The Indian government and the Ministry of Commerce are using this opportunity to work towards a balanced agreement with the US to provide long-term relief to Indian exporters.