US extends reciprocal tariff suspension period from July 9 to August 1

New Delhi: 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.

"....there will be approximately 12 other countries that will receive notifications and letters directly from the President of the United States," she said without naming the countries.

Letters are said to have been issued to Myanmar, South Africa, Malaysia, and Kazakhstan, among others.

According to officials, India has already made its stand clear to the US authorities on the interim trade deal and the ball is now in Washington's court.

The US has been India's largest trading partner since 2021-22.

During 2024-25, the bilateral trade in goods stood at USD 131.84 billion (USD 86.51 billion worth of exports, USD 45.33 billion of imports and USD 41.18 billion trade surplus).