New Delhi : Chief Economic Adviser V Anantha Nageswaran on Thursday said the United States may soon withdraw the 25% penal tariff imposed on Indian goods and reduce the reciprocal duty from 25% to 10-15%. He added that the issue could be resolved in the coming weeks as talks between New Delhi and Washington progress.
The CEA noted that he expects the tariff situation to be settled in about 8-10 weeks. The statement comes just days after India’s chief negotiator for the trade deal, Commerce Ministry’s Special Secretary Rajesh Agrawal, and US Trade Representative for South and Central Asia Brendan Lynch held face-to-face negotiations in Delhi — the first such in-person meeting since the extra tariffs were imposed last month.
The CEA indicated that the reciprocal duty, currently at 25%, may be reduced to a band of 10–15%. He added that the overall tariff dispute could see resolution within the next 8–10 weeks, though he stressed this was his personal assessment and not based on a formal assurance. The comments come just days after India’s chief trade negotiator, Commerce Ministry’s Special Secretary Rajesh Agrawal, met with US Trade Representative for South and Central Asia Brendan Lynch in New Delhi.
The double-layered tariff regime has left some Indian products facing duties as high as 50%, squeezing margins for exporters in labour-intensive sectors such as textiles, engineering goods, and certain food products. A rollback, even partial, could ease cost pressures and restore predictability in bilateral trade, analysts say. While New Delhi has been seeking a negotiated solution, officials acknowledge that US domestic political calculations may also shape the outcome.
For now, exporters and industry bodies will be watching closely whether the US follows through on a rollback of the penal tariffs by the end of November, and whether reciprocal duties are pared down to a more sustainable level.
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