India Eyes Fastest Ever Trade Deal with US After Trump’s Tariff Pause — Aiming to Become America’s Trusted Supply Partner
Date: 10-apr-2025
India is moving quickly to finalize a major trade deal with the United States after President Donald Trump announced a 90-day pause on new tariffs for several countries — a strategic move that has shifted global trade dynamics in 2025. With China facing record-high tariffs of 125%, India sees a golden opportunity to strengthen its role as America’s trusted supply chain partner.
India-US Trade Talks Gain Momentum in 2025
According to a Reuters report quoting senior Indian government officials, New Delhi wants to be among the first nations to conclude a trade deal with Washington. The two countries have already agreed to conclude the first phase of the trade deal by the end of this year, with a larger target of reaching $500 billion in bilateral trade by 2030.
Trump’s Tariff Pause Creates Window of Opportunity
Earlier this week, President Trump halted reciprocal tariffs on multiple trading partners, including India, in a move that brought relief to several export sectors. However, China was excluded from this pause and faced a sharp tariff hike to 125%, escalating its trade war with the US.
Key Sectors Benefiting from India-US Trade Deal
- Shrimp Exports — India’s seafood industry gains relief from tariff disadvantages over competitors like Ecuador.
- Electronics Exports — Valued at nearly $14 billion annually, critical for India’s manufacturing sector.
- Gems & Jewellery — Worth over $9 billion in exports, now faces less tariff pressure.
- Pharmaceuticals, Auto Parts, and Textiles — Expected to be key negotiation points in the deal.
India Strengthens Anti-Dumping Measures
Commerce Minister Piyush Goyal recently indicated that India will intensify checks on imports to prevent dumping, particularly from China. New Delhi wants to ensure that its local industries are protected while positioning itself as a reliable export hub for the US market.
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Experts: India Could Replace China in Key US Supply Chains
Ajay Sahai, Director General of the Federation of Indian Export Organisations, commented that the US sees India as a stable and reliable supplier, especially at a time when Washington wants to limit its dependence on China.
“This 90-day tariff pause gives India critical time to conclude the deal with the US and ensure non-disruptive supplies to American consumers,” Sahai said.
Conclusion: A Strategic Shift in Global Trade
As the US-China trade war intensifies, India is leveraging its position as a stable economy with manufacturing strength and trusted governance. A swift trade deal between India and the US in 2025 could not only boost India’s export-driven sectors but also reshape global supply chains for years to come.
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