2025 US suspends additional tariffs on India for 90 days amid trade policy shift

The United States has announced a 90-day suspension of additional import tariffs on Indian goods, effective until 9 July, according to an executive order issued by the White House. Former US President Donald Trump announced a broader tariff policy on 2 April, imposing new tariffs on exports from around 60 countries, including significantly higher levies on countries such as India.

India is among the countries that have been slapped with an additional 26 per cent import tariff under the sweeping trade measure, which aims to reduce the US trade deficit and boost domestic manufacturing. The new tariffs are likely to affect a range of Indian exports to the US, including key sectors such as seafood (especially shrimp), steel and other industrial products.

While the temporary suspension is a reprieve for Indian exporters, the high tariffs remain in effect for several other countries, notably Thailand, Vietnam and China. Importantly, the suspension does not extend to China or its special administrative regions Hong Kong and Macau, which will continue to face high tariffs under the revised US trade policy.

The White House's decision to delay the implementation of tariffs on India is seen as a gesture to maintain a stable trade relationship with one of America's key strategic partners in Asia. It also opens a window for further diplomatic engagement and possible trade talks aimed at reaching more balanced terms.

Industry experts say that the 90-day grace period will help Indian exporters maintain momentum in the highly competitive US market, but uncertainty remains over the long-term tariff landscape. Stakeholders across industries will be watching closely for any further developments ahead of the July deadline.