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In a relief for India, the United States has announced it will suspend an additional 26% punitive tariff it placed on New Delhi on April 2. Rather, an executive order from the White House claims that the suspension will be effective until July 9 this year. The 90-day suspension aligns with the statement made by President Donald Trump where he mentioned that non-retaliatory parties would be ‘rewarded’. The US, on the other hand, has slashed tariffs to 134% on China.
“Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 A.M. eastern daylight time on April 10, 2025, Enforcement of The Second paragraph of Section 3(a) of Executive order 14257 will be suspended until 12:01 A.M. eastern daylight time on July 9, 2025,” the order read. The 10% baseline tariff on the countries will still remain in effect.
India is among the nations leading the negotiations so it is no surprise that India continues to reinforce trade agreements with the United States. Some reports claim that New Delhi is considering a provisional deal with the U.S. while the Free Trade Agreement is worked on.
On April 2, US President Donald Trump imposed universal duties on 60 countries exporting to America and added even stiffer levies on India which may affect sales of everything from shrimp to steel in the US. The intention of this action was to reduce the trade deficit, while at the same time increasing manufacturing within America.
An additional duty of 26 percent on imports from India was put into place by America. The tariffs were more severe on its competitors Thailand, Vietnam and China.
This suspension of tariffs does not apply to China or Hong Kong and Macao.
The second paragraph of section 3 (a) of the executive order dated April 2 talks about the implementation of reciprocal tariffs as mentioned in annex 1 which lists the ranges of tariffs for each country
