India races to seal trade deal with US after trump’s tariff pause

India is eager to accelerate its trade deal with the United States after President Donald Trump's unexpected decision to hit "pause" on hefty reciprocal tariffs.

The announcement has raised hopes for Indian exporters, particularly in sectors like shrimp.

India and the US had already agreed in February to initiate talks on a trade deal, with plans to finalize a first-phase agreement by Autumn 2025. Both countries are targeting an ambitious $500 billion in bilateral trade by 2030.

"Trump’s 90-day tariff pause is a huge relief for Indian exporters," said a senior Indian government official, speaking on condition of anonymity.

India is one of the first countries to initiate negotiations for a trade agreement with the United States and has agreed on a mutual deadline for its completion.

The official further noted that global trade and export patterns will remain significantly influenced by the ongoing trade tensions between the United States and China.

India's trade ministry, which is leading the discussions with the US, did not immediately respond to an email request for comment.

On Wednesday, President Trump temporarily reduced tariffs on several trading partners, including India, just one day after imposing substantial tariffs that triggered one of the most severe episodes of financial market volatility since the early days of the COVID-19 pandemic.

To maintain pressure on China, President Trump announced he would increase the tariff on Chinese imports to 125%. In contrast, the U.S. reciprocal tariff on India remains at 10%.