Reference News, August 20th. According to Reuters, August 19th, India has suspended the 11% cotton import tariff, effective until September 30th. This move is seen as a signal to Washington, indicating that New Delhi is willing to address U.S. concerns regarding agricultural tariffs, while also alleviating pressure on the domestic textile industry.
The temporary exemption announced late on the 18th will benefit American cotton farmers and provide relief for India's textile industry. Starting later this month, Indian clothing exports to the United States will face a tariff of nearly 60%.
The original plan for the U.S. Trade Representative to visit New Delhi from August 25th to 29th has been canceled, which has delayed negotiations on the proposed bilateral trade agreement between the U.S. and India, and also dashed hopes that Indian goods would be exempt from an additional 25% tariff imposed by the U.S. starting August 27th.
Earlier this month, President Trump announced additional tariffs on Indian goods to punish New Delhi for purchasing Russian oil. This means that the total import tariff on Indian goods into the U.S. will double to 50% from later this month.
Previously, the tax rate on Indian exports was between 0% and 5%, and before Trump raised the tariffs in April, some textiles faced tariffs ranging from 9% to 13%.
The U.S. is the largest market for Indian clothing exporters. Indian exporters say high tariffs are causing order cancellations and putting them at a disadvantage compared to countries like Bangladesh and Vietnam. (Translated by Wu Mei)
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