New Delhi | TVM Times: The Trump 25% penal tariff on India imposed by the United States on Indian imports could be scrapped after November 30, Chief Economic Adviser (CEA) V. Anantha Nageswaran said on Thursday. He expressed confidence that trade relations between India and the US would see significant improvement in the coming months.
Addressing concerns on the ongoing tariff issue, Nageswaran noted: “The original reciprocal tariff of 25% and the subsequent penal tariff of another 25% were never anticipated. Geopolitical factors may have influenced the second levy, but recent developments suggest the penal tariff will likely not remain after November 30.”
Why the Tariffs Were Imposed
The additional duties were announced by former US President Donald Trump in retaliation for India’s continued oil trade with Russia. This Trump 25% penal tariff on India was added to the existing 25% reciprocal tariff, effectively doubling duties on Indian imports to 50%.
Positive Signs in Trade Talks
Nageswaran further highlighted that talks between New Delhi and Washington are progressing: “Beneath the surface, conversations are going on between the two governments. My hunch is that in the next 8–10 weeks, we will likely see a solution to the tariff imposed by the US on Indian goods.”
The additional tariffs came into effect on August 27, but since then, diplomatic exchanges between Prime Minister Narendra Modi and Trump have indicated a possible thaw in relations.
Legal Challenge in the US
The US Appeals Court recently ruled that Trump’s move to impose reciprocal tariffs was unlawful ( Trump 25% penal tariff on India Issue) , stating that the International Emergency Economic Powers Act (IEEPA), 1977, does not authorize the President to levy tariffs or taxes. The case is now before the US Supreme Court, which is set to hear it in early November.
If the court rules against the tariffs and diplomatic efforts succeed, India–US trade ties could move towards a more cooperative and growth-driven phase.
News Source: PTI
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