New Delhi, April 11, 2025 – The United States has hit pause on a steep 26% additional tariff on Indian imports, suspending it for 90 days until July 9, per a White House order issued late Wednesday. The reprieve, effective from 12:01 AM EDT today, covers goods entering the US but leaves China facing a bruising 104% levy—escalated to 125% Thursday—offering India a breather amid Trump’s trade war storm.
The rollback stems from Trump’s April 2 slap of reciprocal duties on 60 nations, tagging India with 26% atop a 10% baseline for its $36.8 billion trade surplus with the US in FY24 (Live Mint). “Over 75 partners, including India, engaged us on reciprocity—China didn’t,” the April 9 order noted, per The Indian Express. Steel, aluminum, and auto parts still carry a 25% hit since March, but pharma and semiconductors dodge the axe—key for India’s $77.5 billion US exports (IBEF, 2024).
Markets cheered—Sensex soared 1,210 points to 75,057 Thursday (Times of India). Commerce Minister Piyush Goyal, in a Friday meet, called it “a window to seal a trade deal,” pushing for a $500 billion bilateral pact by 2028 (NDTV). Exporters exhaled—$1.82 billion in jewelry exports were at risk, per GTRI. “We’ve got time to pivot,” a Delhi trader told The Hindu. Posts on X buzz, “India’s dodged a bullet—China’s toast!”
Trump’s not budging on China—Beijing’s 125% counter-tariff Thursday proves it’s a slugfest. India’s sidestepping the chaos, but the 10% baseline lingers—will Goyal’s talks with Katherine Tai clinch a long-term fix? With $14.4 billion in electronics exports on the line, it’s crunch time. Can India leverage this pause, or just kick the can down a rocky road?
