Indian exporters hail US decision to extend tariff hike deadline to August 1

New Delhi, July 8 (IANS) Indian exporters have welcomed the US decision to postpone the tariff hikes on imports from July 9 to August 1, as this will allow more time for talks to sort out the trade issues.

Director General of the Federation of Indian Export Organisations (FIEO) Ajay Sahai said that this deferment of the imposition of reciprocal tariffs reflects the US's willingness to engage constructively with its trading partners.

"It provides an extended window for dialogue, which can help our negotiators to sort out remaining contentious issues," he pointed out.

Sahai further stated that the proposed tariffs, covering a dozen countries, may provide India with more comparative advantage if it finalises a BTA (bilateral trade agreement) with the US, at least on goods, by the end of this month.

United States' Treasury Secretary Scott Bessent earlier said that Washington is close to reaching agreements on several trade deals as "a lot of proposals" have poured in from various countries at the last minute.

His comments hint at several big trade deal announcements by the Donald Trump administration.

"So my mailbox was full last night with a lot of new offers, a lot of new proposals…It’s going to be a busy couple of days," he told CNBC.

"President Trump's going to be sending letters to some of our trading partners saying that, if you don't move things along, then on August 1, you will boomerang back to your April 2 tariff level. So I think we're going to see a lot of deals very quickly," Bessent said, according to media reports.

Trump has announced a number of trade deals, including with Vietnam and China. He had stated last month that the US and India “may sign an agreement that will open up India for US goods.

India’s high-level official delegation, led by chief negotiator Rajesh Agrawal, has returned from Washington after the trade talks with US officials without reaching a final agreement on the sensitive issue of trade in agricultural and dairy products that the US is pushing for.

However, there is still a glimmer of hope that an interim bilateral trade agreement may be reached at the highest political level in the two countries before the deadline for the 26 per cent hike in US tariffs on Indian exports kicks in.

The US is seeker greater access for its agricultural and dairy products, which is a major hurdle, as for India, this is a livelihood issue of the country’s small farmers and hence a sensitive area.

India is looking to secure significant tariff concessions for its labour-intensive exports such as textiles, leather and footwear.

--IANS

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