Trump Tariff | India’s Diplomatic Win? U.S. Extends Suspension of Retaliatory Tariffs Until August 1, Bringing Relief to Indian Exporters
In a separate executive order, the U.S. President extended the deferment of increased tariffs on several other countries until August 1. The 90-day suspension of these tariffs was originally set to expire on July 9.
Trump Delays Higher Tariffs on 14 Countries Including Japan and South Korea
U.S. President Donald Trump has delayed imposing higher tariffs on imports from 14 countries, including Japan and South Korea. This move comes just as the 90-day suspension of some of the White House’s toughest import taxes was set to expire this week. Trump, however, reiterated his warning that a 25% tariff could still be imposed on goods from Japan and South Korea. He also shared letters sent to leaders of several countries, stating that new tariffs would take effect from August 1. Originally scheduled to begin on July 9, the tariffs had already been postponed as U.S. officials sought to negotiate trade agreements.
U.S. Extends Suspension of Retaliatory Tariffs Until August 1
The extension of the suspension of retaliatory tariffs until August 1 is expected to provide relief to Indian exporters. It also gives India and the U.S. additional time to resolve outstanding issues and finalize an interim trade agreement. On Monday, the Trump administration sent letters to several countries listing the tariffs that would be imposed on their products. These countries included Bangladesh, Bosnia & Herzegovina, Cambodia, Indonesia, Japan, Kazakhstan, Laos, Malaysia, Serbia, South Africa, South Korea, Thailand, and Tunisia. India, however, was not included in the list.
Relief for Indian Exporters
In a separate executive order, Trump extended the delay on increased tariffs for several countries until August 1. The suspension, which was originally set to end on July 9, has now been pushed back by three weeks. Commenting on the development, Indian exporters said the decision reflects America’s willingness to engage constructively with its trade partners.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said, “This provides an extended window for negotiations, helping our negotiators resolve the remaining contentious issues.” He further explained that nearly 12 countries fall within the scope of the proposed tariffs. India, however, stands to gain more if it finalizes at least a partial Bilateral Trade Agreement (BTA) with the U.S. by the end of this month.
International trade expert Biswajit Dhar echoed this sentiment, describing the decision as a “welcome relief” and attributing it partly to India’s firm stance on certain trade matters.
Mixed Reactions from Exporters
While exporters welcomed the temporary relief, they also expressed caution. FIEO President and Ludhiana-based engineering exporter noted that it was a “small relief” but expectations were higher. Sharad Kumar Saraf, founder of Mumbai-based Technocraft Industries (India), described Trump as “highly unpredictable” and warned that the suspension period was too short. He suggested that Indian exporters should diversify and explore new markets to safeguard against sudden tariff shocks.
India and the U.S. are currently negotiating a bilateral trade agreement, aiming to conclude the first phase by autumn this year (September–October).
India’s Position and Trade Outlook
According to officials, India has already clarified its stance on the interim trade agreement to U.S. authorities, and now the decision lies with Washington. The United States has been India’s largest trading partner since FY 2021-22. In FY 2024-25, bilateral trade in goods stood at USD 131.84 billion, including exports worth USD 86.51 billion, imports of USD 45.33 billion, and a trade surplus of USD 41.18 billion in India’s favor.
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