US delays tariff deadline from July 9 to August 1 as Trump signs executive order

The United States on Monday, July 7, decided to hold implementation of its "Liberation Day" reciprocal tariffs until August 1, giving more time to resolve issues between New Delhi and Washington before finalising an interim trade deal.

US President Donald Trump on April 2 had announced reciprocal tariffs against several countries, including India (26%), but delayed implementation of these duties for three months (90 days), giving nations a July 9 deadline to reach a deal.

In a fact sheet, White House said, "Today, President Donald J. Trump signed an Executive Order determining that certain tariff rates, which were initially set to expire on July 9, will expire on August 1, 2025. President Trump also sent tariff letters to many countries informing them of their new reciprocal tariff rates, which will take effect on August 1."

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 reach an interim trade deal.

Meanwhile, Trump on Monday placed a 25% 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," White House Press Secretary Karoline Claire Leavitt 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).