India’s Chief Economic Adviser (CEA) V. Anantha Nageswaran expressed optimism that the tariff tensions with the United States could be resolved in the coming weeks. The U.S. had imposed a 25% reciprocal tariff on Indian goods, followed by an additional 25% penal tariff in response to India’s continued purchases of Russian oil. This double-layer tariff, totaling 50%, was deemed a significant challenge for Indian exports, which had otherwise shown resilience.
According to Nageswaran, conversations are underway between the two governments to find a solution. He hinted that the penal tariff might be withdrawn after November 30 and that the reciprocal tariff could be reduced to a more manageable 10-15%. While he stressed that this was his personal assessment and not based on any formal assurance, he expressed hope for a resolution within the next eight to ten weeks.
The article also highlights a recent thaw in relations between U.S. President Donald Trump and Indian Prime Minister Narendra Modi. Trump’s recent positive remarks about Modi and the resumption of trade dialogue are seen as hopeful signs. The U.S. has also expressed its desire for India to increase its purchases of American crude oil, which could be part of the ongoing trade negotiations.