90-Day Tariff Relief: A Strategic Pause for India-US Trade Talks

The U.S. has deferred reciprocal tariffs for 90 days, providing a crucial opportunity for advancing India-US trade agreement discussions. Indian exporters see the move as a chance for strategic negotiation and economic benefit, particularly with high tariffs on Chinese goods aiding domestic industry growth.

The recent 90-day deferral of reciprocal tariffs by the United States offers a significant relief and opportunity for India, allowing crucial window for enhanced negotiations on the bilateral trade agreement. Exporters express optimism as this strategic move is seen to avoid immediate negative economic impacts while facilitating ongoing diplomatic talks.

S C Ralhan, President of the Federation of Indian Export Organisations, highlights the advantage this decision brings, emphasizing the commerce ministry's assurance of swift agreement finalization. In line with this sentiment, exporter S K Saraf identifies potential economic gains, notably through exploiting high tariffs on China to import affordable intermediates, promoting domestic manufacturing.

Against the backdrop of a global market downturn, U.S. President Donald Trump unexpectedly postponed tariffs, but increased the rate on Chinese imports to 125 per cent. This shift is seen as a diplomatic opening for India, as the commerce and industry minister underscores a balanced approach in ongoing trade negotiations with the U.S., aiming for a substantial increase in trade volume by 2023.

(With inputs from agencies.)