NEW DELHI — A leading Indian export official said that the United States’ recent tariff reprieve offers New Delhi a strategic opening to deepen trade ties with Washington, as escalating tensions with China reshape global trade flows.
Ajay Sahai, director general of the Federation of Indian Export Organisations (FIEO), which represents more than 37,000 exporters, said the 90-day pause on certain US tariffs provides “critical breathing room” for Indian negotiators to pursue a bilateral trade agreement with the United States.
India and the US have been engaged in trade talks since February, with both sides hoping to finalize a first-phase agreement later this year. New Delhi has set an ambitious goal of expanding bilateral trade to $500 billion by 2030, from the current $191 billion in goods and services.
The shift in tone follows a dramatic policy reversal by President Donald Trump, who on Wednesday announced a temporary suspension of new tariffs imposed on dozens of countries — including India — while significantly raising duties on Chinese imports.
The White House said that tariffs on Chinese goods would surge to 125%, effectively deepening the ongoing trade conflict with Beijing. Meanwhile, Trump has kept in place 25% tariffs on aluminium, steel, and automobiles, which continue to affect many US trading partners.
India, one of America’s largest trade partners, was among several countries hit by a 26% tariff last week. However, that measure has now been paused under the administration’s new strategy to isolate China while creating space for bilateral realignment.
The reciprocal US tariff on Indian goods currently stands at 10%, providing limited relief as Indian exporters seek stable market access and broader trade concessions.
Mr. Sahai said India is now well-positioned to fill part of the trade vacuum left by China, particularly in sectors like textiles, pharmaceuticals, and precision manufacturing.
“The pause allows us to finalize a deal and recalibrate our strategy,” Sahai said in an interview. “With China increasingly sidelined, India has a unique window to strengthen its export foothold.”
US and Indian officials have not yet released a formal timeline for the conclusion of the trade agreement, but negotiators are reportedly working to address outstanding issues related to tariffs, digital trade, and supply chain cooperation.
