On April 2, US President Donald Trump slapped universal duties on about 60 countries exporting goods to America and additional steep levies on countries like India, potentially impacting sales of products from shrimp to steel in the world's biggest economy. The move was aimed at cutting its trade deficit and boosting domestic manufacturing
On April 2, US President Donald Trump imposed duties on about 60 countries exporting goods to America. File pic
The United States (US) has announced the suspension of additional tariffs on India for 90 days until July 9, a White House executive order stated.
The decision follows a sweeping move by US President Donald Trump on April 2 to impose universal import duties on approximately 60 countries. India was among those subjected to steeper levies, with new tariffs affecting a wide range of products from shrimp to steel. The aim, the administration said, was to curb the trade deficit and boost domestic manufacturing.
India’s competitors, including Thailand, Vietnam and China, also faced significant tariffs. This temporary suspension does not apply to China, including Hong Kong and Macau, news agency PTI reported.
“Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on 10 April 2025, enforcement of the second paragraph of section 3(a) of Executive Order 14257 is suspended until 12:01 a.m. Eastern Daylight Time on 9 July 2025,” the White House order stated.
The relevant section of the 2 April executive order outlines the implementation of reciprocal tariffs, detailed in Annex I, which lists the tariff rates for different nations. While the 26 per cent tariff on Indian goods is suspended, the baseline 10 per cent tariff remains in force, PTI reported.
“Since I signed Executive Order 14257, in contrast to the PRC’s actions, more than 75 other foreign trading partners, including countries enumerated in Annex I… have approached the United States to address the lack of trade reciprocity… This is a significant step toward remedying non-reciprocal trade arrangements,” stated President Trump.
Trade experts in India noted that despite the 90-day relief, other tariffs — such as the 25 per cent duties on steel and aluminium (effective since March 12), and on automobiles and auto components (since April 3) — remain in place.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said that strategic sectors such as semiconductors, pharmaceuticals, and some energy products are currently exempted.
Federation of Indian Export Organisations (FIEO) President SC Ralhan welcomed the temporary suspension. “It is a good decision by the Trump administration. We have been assured by the commerce ministry that the agreement will be finalised at the earliest,” he said, expressing hope for progress on the proposed bilateral trade agreement (BTA) between India and the US.
(With PTI inputs)
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