India, US to Use 90-Day Pause for Bilateral Deal

India is looking at a sprint in its trade negotiations with the US over the next 90 days and is targeting tangible outcomes that could stave off the additional reciprocal tariffs put on hold by Washington late on Wednesday, people aware of the matter said.

- Rajeev Jayaswal

If the negotiating teams achieve concrete milestones within this timeframe and prepare a draft bilateral trade agreement (BTA) ready for formal approval, the US could abandon reinstating the additional reciprocal tariff for India after the 90-day period, said two officials with direct knowledge of the matter.

"Both teams are working overtime to showcase one of the first major bilateral deals of Trump's second term," one of the officials said.

The trigger for the race to clinch a deal was US President Donald Trump's surprise turnabout late on Wednesday when he announced in a social media post he was reducing for 90 days the reciprocal tariffs to the baseline 10% for all trading partners except China, on which he raised the tax rate to 125%.

White House on Thursday clarified Chinese imports would now have to pay a total 145% tariff.

Tariffs on exports from India were to draw a levy of 26% until the reprieve announced by Trump brought it down to 10%.