On July 7, 2025, India received a reprieve from new U.S. tariffs targeting countries like Japan and South Korea, providing relief to its currency and exporters. The Indian rupee is expected to strengthen slightly, with traders anticipating an opening range of 85.70-85.75, compared to 85.85 in the previous session. This follows U.S. President Donald Trump’s announcement of a delayed tariff implementation until August 1, 2025, giving nations time to negotiate trade deals.
India’s exemption stems from ongoing trade talks, with Trump indicating a potential agreement that could shield key sectors like pharmaceuticals and electronics, which account for significant U.S. exports. Posts on X reflect optimism among Indian investors, noting the rupee’s resilience amid global market volatility. The pharmaceutical sector, a major contributor to India’s $9 billion in U.S. exports, benefits from continued tariff exemptions, boosting stocks like Sun Pharma and Lupin by nearly 3% on July 8.
While India faces a 27% reciprocal tariff on some goods, its lower rate compared to Vietnam (46%) and China (54%) positions it competitively. The Ministry of Commerce is actively engaging with U.S. officials to secure a broader trade deal by fall 2025, aiming to double bilateral trade to $500 billion by 2030. This development offers India a window to strengthen its economic ties with the U.S. while navigating global trade challenges
Published in SouthAsianDesk, July 8th, 2025
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