NEW DELHI— Indian exporters have welcomed the United States’ decision to postpone planned tariff hikes on imports from July 9 to August 1, saying the extension provides critical time for further negotiations to resolve outstanding trade issues.
Ajay Sahai, Director General of the Federation of Indian Export Organisations (FIEO), said the delay demonstrates Washington’s willingness to engage constructively with its trade partners.
“This deferment reflects a positive intent and provides an extended window for dialogue, which can help our negotiators resolve the remaining contentious issues,” Sahai noted.
He added that the proposed U.S. tariffs, which target imports from over a dozen countries, may work to India’s comparative advantage—especially if New Delhi can finalize a bilateral trade agreement (BTA) with the U.S., at least covering goods, by the end of this month.
U.S. Treasury Secretary Scott Bessent indicated that several trade deals are close to being finalized, as many countries have submitted proposals in the final hours. Speaking to CNBC, Bessent said, “My mailbox was full last night with a lot of new offers, a lot of new proposals… It’s going to be a busy couple of days.”
He added, “President Trump is going to be sending letters to some of our trading partners saying that, if you don’t move things along, then on August 1, you will boomerang back to your April 2 tariff level. So I think we’re going to see a lot of deals very quickly.”
President Trump has recently announced new trade agreements, including with Vietnam and China. Last month, he also suggested that a deal with India may be forthcoming, one that would open Indian markets to more U.S. goods.
India’s high-level delegation, led by chief negotiator Rajesh Agrawal, recently returned from Washington after trade talks with U.S. officials, though no final agreement was reached—particularly on sensitive issues surrounding agricultural and dairy imports pushed by the U.S.
Still, there remains hope that an interim bilateral trade agreement may be finalized at the political level before the 26% tariff hike on Indian exports takes effect on August 1.
Agricultural and dairy market access remains a key sticking point. For India, protecting small farmers is a politically sensitive issue tied to livelihoods, while the U.S. is seeking greater entry for its products in these sectors.
In return, India is looking to secure tariff concessions for labor-intensive exports such as textiles, leather goods, and footwear—key sectors for employment and growth. (Source: IANS)
