India to press US to suspend tariffs till trade deal is done

As the global tariff war intensifies following US President Donald Trump's tariff bombshell, India is preparing to increase both official and backchannel talks with Washington to protect its export interests.

- Dhirendra Kumar

According to two people familiar with the development, the Indian government is exploring a plan to negotiate the suspension of the 26% tariffs imposed by the US on Indian goods until a Bilateral Trade Agreement (BTA) between the two countries is finalized by fall 2025.

"We are exploring all possible avenues to mitigate the potential losses our exports may face if the reciprocal tariff measures announced by the US administration remain in place. India does have an added advantage, as it is the only country that has been offered the opportunity to pursue a bilateral trade agreement with the US," said the first among the two persons mentioned above.

As per the plan, India would either seek a suspension of the 26% reciprocal tariffs on all products until the BTA is concluded, or negotiate temporary relief for a select list of high-performing export categories such as textiles, engineering goods, and electronics goods, this person said.

Queries sent to the ministries of commerce and external affairs remained unanswered.

"Whatever is feasible within the scope of ongoing trade discussions and our international commitments will be pursued," the second person said.

India's attempt to secure a suspension of reciprocal tariff measures comes in the backdrop of several such steps taken in the past by other trading partners to facilitate dialogue and finalize trade agreements.