25% Additional US Tariffs On India Likely To Be Resolved In 2 Months: CEA Nageswaran | Economy News

The US in August imposed a 25% tariff on Indian imports.

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said the issue of an additional 25% US tariffs is expected to be resolved in the next couple of months. He added that talks are going on between the US and India.

“I don’t have any inside info, but expect a resolution to the additional 25% US tariff in the next couple of months. In 8-10 weeks, we will likely see a solution to an additional penal tariff imposed by the US. Conversations are going on between the two governments, India and the US,” said V Anantha Nageswaran while speaking at an event in Kolkata.

He added that reciprocal Indian tariffs may fall “somewhere between 10% and 15%”.

On September 16, chief negotiators of India and the US commenced talks on the proposed trade agreement to iron out issues in the wake of steep tariffs that have created uncertainties for exporters.

Brendan Lynch, the Assistant US Trade Representative for South and Central Asia, is leading the American team, while Rajesh Agrawal, Special Secretary in the Department of Commerce, is India’s chief negotiator.

Lynch arrived in India late Monday for a day-long talk with his Indian counterpart.

This is the first visit by a high-ranking US trade official after the imposition of a 25 per cent tariff and an additional 25 per cent penalty on Indian goods entering the American market for buying Russian crude oil.

In February, the leaders of the two countries directed officials to negotiate a proposed Bilateral Trade Agreement ( BTA). It was planned to conclude the first tranche of the pact by the fall of 2025. So far, five rounds of negotiations have been held, and the talks for the sixth round, which were scheduled from August 25-29, were postponed following the imposition of the high import duties.

The meeting is taking place within days, Prime Minister Narendra Modi warmly reacting to US President Donald Trump’s positive assessment of trade ties between the two countries.

In August, the Trump administration ramped up trade tensions with India by imposing steep tariffs — first a 25% “reciprocal” levy, followed by an additional 25% penalty tied to India’s continued purchases of Russian oil — raising the total duty to a staggering 50%. The move targeted a wide range of exports, including textiles, gems and jewellery, footwear, and chemicals, dealing a major blow to export-intensive sectors and straining bilateral ties.

India termed the tariffs as “unfair, unjustified and unreasonable”.

(With Inputs From Agencies)