The U.S. Suspends Further 26% Tariff on Indian Goods Until July 9 in Global Trade Negotiations

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The US has temporarily shelved its move to impose an additional 26% tariff on Indian imports, granting Indian exporters temporary respite. The suspension, extending to July 9, 2025, is viewed as a diplomatic opportunity to advance bilateral trade negotiations.

This follows in its trail a wave of tariff increases introduced by the US across the board—most significantly, 125% for China. In contrast, today, Indian products have a 10% tariff levied by the US, and the further 26%, which would have dealt a serious hit to Indian exports, primarily electronics, textiles, and seafood.

An Indian official said the 90-day suspension gives exporters, especially those in sensitive industries such as shrimp and jewelry, an important breathing space. It also shows willingness from both parties to refrain from an escalated trade conflict and concentrate on further commercial relations.

Indian officials are now eager to seize this chance to seal terms for an extended trade agreement. With uncertainties surrounding world trade increasing, this move by the US has been viewed as an attempt to balance its Asian economic diplomacy.

With the July deadline approaching, eyes will be fixed in Washington and New Delhi to watch whether this break can translate into long-term policy cooperation and mutually beneficial economics.

 

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