The US on Monday decided to delay imposing its “Liberation Day” reciprocal tariffs until August 1, allowing more time to iron out issues between New Delhi and Washington before finalising an interim trade deal.
On April 2, US President Donald Trump announced reciprocal tariffs against a number of countries including India (26 per cent), but paused the implementation of these duties for 90 days, giving all trading partners the deadline till July 9 to reach a deal.
“The President will sign an executive order today delaying the July 9 deadline to August 1,” White House Press Secretary Karoline Claire Leavitt told reporters in Washington.
India and the US are negotiating a bilateral trade agreement. They have set a deadline to conclude the first tranche by fall (September- October) this year. Before that, the two countries are looking to finalise an interim trade deal.
Meanwhile, Trump on Monday placed a 25 per cent tax on goods imported from Japan and South Korea, citing persistent trade imbalances with the two crucial US allies in Asia. The duties will take effect from August 1.