The United States may soon remove the penal 25% tariff on Indian goods and lower reciprocal duties to 10-15% from the current 25%, India’s Chief Economic Adviser V. Anantha Nageswaran said on Thursday.
“My personal confidence is that in the next couple of months, if not earlier, we will see a resolution to at least to the extra penal tariff of 25%,” Nageswaran said at an event in Kolkata.
He added: “It may also be the case that reciprocal tariff of 25% may also come down to levels, which we were earlier anticipating somewhere between 10% and 15%.”
India and the US held what New Delhi described as “positive” and “forward-looking” trade discussions on Tuesday, boosting hopes of an early breakthrough after President Donald Trump imposed additional tariffs on India for buying Russian oil.
US-India Relations See Thaw
Trump had slapped a punitive 25% levy on India from August 27, doubling overall tariffs to 50%, as part of Washington’s pressure campaign on Moscow over the war in Ukraine.
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On Tuesday, Trump and Prime Minister Narendra Modi spoke by phone, with the US president saying he thanked Modi for his help in ending the war between Russia and Ukraine. While no details of any agreement were shared, the call indicated a thaw in recent tensions between the two countries, who share strategic concerns over China.
Trump had also struck a more conciliatory tone last week, expressing optimism that a trade deal could be finalised soon.
Following Nageswaran’s comments, Indian markets responded positively, with the benchmark Nifty 50 index hitting a one-week high and recording its best close since July 9.
