The US has given Indian exporters a short-term reprieve and given negotiators more time to settle outstanding issues under an interim trade agreement by extending the suspension of its reciprocal tariffs suspended on 2nd April until 1st August.
The list of nations that received tariff notification letters on Monday didn’t include India, which is in advanced negotiations with Washington to finalise a bilateral trade pact.
More than a dozen countries, including Bangladesh, Malaysia, South Africa, South Korea, Japan, and others, received these letters from the Trump administration informing them that new duties would be implemented on 1st August.
The White House stated that the decision to postpone implementation was made in light of different senior officials’ suggestions and additional facts, including details regarding the state of talks with trading partners.
Executive Order 14266 had previously declared that the suspension would end on 9th July. In the initial statement on 2nd April, India was one of the nations targeted for reciprocal duties, which were set at 26%.
However, trading partners were given a 90-day opportunity to discuss possible remedies. About three extra working weeks are available for discussion under the new extension. India’s exporters applauded the action.
The Federation of Indian Export Organisations (FIEO) director general Ajay Sahai stated that it offers a longer period of time for discussion, which can assist Indian negotiators in resolving any outstanding difficulties. “If India completes a bilateral trade agreement centred on goods by the end of July, the imposition of tariffs on other countries could also give India a comparative trade advantage,” he added.
Officials have confirmed that Washington has already been informed of India’s stance on important issues as the two countries work to conclude the first phase of their bilateral trade agreement by September or October.
