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US pauses additional 26% tariff on India for 90 days: White House
Apr-11-2025

The White House executive orders noted that the US has suspended the additional tariffs on India for 90 days until July 9, 2025. With an aim of cutting US’ trade deficit and boosting domestic manufacturing, the US President Donald Trump, on April 2, 2025, had imposed 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 US imposed an additional import duty of 26 per cent on India, although the tariffs on its competitors like Thailand, Vietnam and China were comparatively higher. While, the president Trump has suspended the tariffs for 90 days, the 10 per cent baseline tariff imposed on the countries will continue to remain in place. Meanwhile, this suspension of tariffs is not applicable to China, including Hong Kong and Macau. However, according to a trade expert, the 25 per cent duty on steel, aluminium (effective from March 12), auto and auto components (from April 3) also continues.

Commerce and Industry Minister Piyush Goyal in his meeting with industry and exporters on April 9, has asked exporters not to panic and assured them that India is working on the ‘right mix and right balance’ in its proposed trade agreement with the US. With an aim to double the India-USA trade to $500 billion by 2023 from about $191 billion at present, both the countries are negotiating a bilateral trade agreement (BTA) and are aiming to conclude the first phase by the fall (September-October) this year. The minister assured that the country is working in a proactive manner and exploring solutions which are in the best interest of the nation.

In 2023-24, the US was the largest trading partner of India, India-US billion bilateral trade in goods stood at $119.71 billion with India exporting goods worth $77.51 billion and importing goods worth $42.19 billion, leading to a trade surplus of $35.31 billion. Meanwhile, with a bilateral trade of $118.39 billion, China was the second largest trading partner India. However, India recorded a $85 billion trade deficit with China, as the country’s exports to Chian stood at $16.65 billion and imports were at $101.73 billion. The US accounts for about 18 per cent of India's total goods exports, 6.22 per cent in imports, and 10.73 per cent in bilateral trade, meanwhile, China's share is just about 4 per cent in exports and a staggering 15 per cent in imports. 
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