Daijiworld Media Network - New Delhi

New Delhi, July 8: The United States has extended the suspension of its proposed reciprocal tariffs on Indian goods until August 1, giving much-needed breathing space to Indian exporters and injecting fresh momentum into ongoing bilateral trade negotiations.

Originally scheduled to expire on July 9, the tariff suspension has now been extended following recommendations from senior US officials and in view of continuing discussions between the two governments. The White House announced the extension on Monday, underlining its willingness to maintain dialogue with key trade partners.

The move follows an April 2 announcement by president Donald Trump of a 26% reciprocal tariff on Indian imports—a measure that was put on hold for 90 days to allow room for negotiations. With the extension, both countries now have a few more weeks to resolve outstanding differences and potentially finalise a broader bilateral trade agreement (BTA).

“This extension signals Washington’s intent to keep talks going and avoid disruption to an important trade relationship,” said Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO). “It gives our negotiators additional time to close the gaps and possibly wrap up an agreement on goods.”

India was notably left out of the latest round of tariff notifications issued by the US administration, which included countries like Bangladesh, Indonesia, Japan, South Korea, Malaysia, Thailand, South Africa and others. Those notices outlined tariffs set to take effect from August 1.

The delay has been widely welcomed by Indian exporters, who see it as a short but vital opportunity to secure favourable terms. “The extension gives the Indian side another 12–13 working days to continue talks. It’s a small but crucial window,” said an exporter familiar with the discussions.

Trade expert Biswajit Dhar called the US decision a positive sign. “This is a recognition of India’s strong negotiating position and willingness to engage constructively,” he said.

FIEO president and Ludhiana-based exporter also expressed cautious optimism. “It’s a reprieve, but we’re watching closely. Much will depend on the next few days.”

Sharad Kumar Saraf, founder of Technocraft Industries and a veteran Mumbai-based exporter, warned against complacency. “President Trump has always been unpredictable. Indian exporters must continue to diversify their markets and reduce dependence on the US,” he said.

India and the US are working toward a broader trade pact, with the first phase expected to be concluded by the fall of 2025. Meanwhile, efforts are underway to iron out an interim deal covering key sectors.

Officials in New Delhi said they have conveyed India’s position clearly to the US, and the ball is now in Washington’s court. The US has been India’s largest trading partner since 2021–22. In 2024–25, bilateral trade in goods touched $131.84 billion.