About 55% of India’s total merchandise exports to the US will be subject to 25% reciprocal tariff, minister of state (MoS) for finance ministry Pankaj Chaudhary has said. In a written reply to a question in the Lok Sabha, Chaudhary said the government attaches utmost importance to protecting and promoting welfare of farmers, entrepreneurs, exporters, MSMEs, and will take all necessary steps to secure our national interest.
Earlier, Union minister Rajnath Singh took a veiled jibe at United States President Donald Trump on Sunday over the country’s steep 50% tariffs on Indian goods, imposing as a ‘punishment’ for purchasing oil from Russia. He added that efforts were being made to make Indian-made products more expensive in global markets so they lose their competitiveness. The move comes as the US seeks to pressure Russia into stopping the war in Ukraine.
After the announcement of tariffs last week, US President Trump on Thursday ruled out the possibility of trade talks with India until the issue of tariffs is resolved.
In a counter-active approach, Trump and his cabinet have taken a U-turn and extended their trade truce until 10 November, just hours before a jump in trade tariffs had been set to take effect. The US President Donald Trump signed an executive order with the People’s Republic of China (PRC), and stated the move was necessary in light of continuing talks with China to address “the lack of trade reciprocity in our economic relationship and our resulting national and economic security concerns.” In a joint statement, the world’s two biggest economies said triple-digit tariffs on each other’s goods announced earlier this year will be suspended for another 90 days.
- It means Washington will further delay imposing 145% tariffs on Chinese goods and Beijing will continue its pause on 125% duties on US shipments.
- Under the agreement, the US will hold its tariffs on Chinese imports at 30%, while China will keep a 10% tariff on American goods.
- The truce extension will give more time for negotiations about “remedying trade imbalances” and “unfair trade practices”, the White House quoted.
- The talks will also aim to increase access for US exporters to China and address national security and economic issues, the statement said.
In the official statement released, China also called on the US to lift its “unreasonable” trade restrictions, work together to benefit companies on both sides and maintain the stability of global semiconductor production.
What led to the Trade Truce?
A return of higher duties would have risked further trade turmoil and uncertainty amid worries about the effect of tariffs on prices and the economy. Trade tensions between the US and China reached fever pitch in April, after Trump unveiled sweeping new tariffs on goods from countries around the world, with China facing some of the highest levies.
The capital Beijing retaliated with tariffs of its own, giving out a befitting reply, that saw tariffs soar into the triple digits and nearly shut down trade between the two countries. The two sides have long remained in discussion on matters related to access to China’s rare earths, its purchases of Russian oil, and US curbs on sales of advanced technology, including chips to China.
However, even with the truce being implemented, trade flows between the countries have been hit this year, with US government figures showing the US imports of Chinese goods in June 2025 cut nearly in half compared with June 2024 statistics, as per a BBC news report.
Helene Elliott is the senior reporter for News Raise. She covers Science news. She also has a keen interest in photojournalism. Helene holds a nomination for the prestigious Red Smith Award. She is married to author Dennis D’Agostino, a former publicist with the New York Mets.
