Donald Trump’s 90-day pause on tariffs: India eyes quick trade deal with US

TOI Business Desk / TIMESOFINDIA.COM / Updated: Apr 10, 2025, 16:58 IST

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India aims to accelerate trade agreement talks with the US after a temporary pause on reciprocal tariffs, while the US increases duties on China. India was among the first to initiate trade discussions with the US, targeting $500 billion in bilateral trade by 2030.

We Asked People How Trump’s Tariffs Would Affect Them�?| I Witness | Trade War

In February, India and US had announced plans to complete the first phase of a trade agreement soon. (AI image)

India is eager to expedite a trade agreement with the United States following US President Donald Trump's unexpected decision to temporarily pause the implementation of reciprocal tariffs on many countries whilst increasing duties on China.
Trump announced an increase to 125% tariff on Chinese imports to maintain pressure on China, whilst the US reciprocal tariff for India remains at 10%.
In February, India and the United States had announced plans to complete the initial phase of a trade agreement by autumn 2025, with the objective of achieving bilateral trade of $500 billion by 2030.
"The 90-day pause on reciprocal tariffs is a relief for Indian exporters, especially shrimp exporters," a government official told Reuters.
The official noted that India was amongst the earliest nations to initiate trade deal discussions with the United States, having mutually agreed upon a completion deadline.
Also Read | India open to zero duty on imports from US in PLI, others sectors
The official further indicated that international export and trade patterns would continue to be influenced by the trade tensions between the United States and China.
On Wednesday, Trump provisionally reduced duties on trading partners including India, merely 24 hours after implementing steep tariffs that triggered the most significant stock market turbulence since the early stages of the COVID-19 pandemic.

According to an ET report, India has expressed openness to consider duty-free imports from the US across multiple sectors, including those covered under PLI schemes. A comprehensive offer from India could expedite the proposed bilateral trade agreement.
The PLI scheme currently spans 14 distinct sectors with an allocated budget of Rs 1.97 lakh crore. These sectors include mobile phones, drones, white goods, telecom, textiles, automobiles, specialty steel and pharmaceuticals.
Also Read | Apple looks to manufacture more iPhones in India as Trump’s tariffs hit China harder: Report
Meanwhile, shifting focus to GDP growth amidst the ongoing global turmoil and declining inflation, the Reserve Bank of India has cut the repo rate by 25 basis points to 6%. RBI governor Sanjay Malhotra has warned of heightened risks to India’s GDP growth with the trade war uncertainties.
“The recent trade tariff related measures have exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation,�?Sanjay Malhotra said in the monetary policy statement.
“The global economy is going through a period of exceptional uncertainties. The difficulty to extract signal from a noisy and uncertain environment poses challenges for policy making,�?he said.

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TOI Business Desk

The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.

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