India’s Chief Financial Advisor V Anantha Nageswaran has mentioned that the US might withdraw the 25 per cent penal tariff on Indian items after November 30, providing reduction to exporters burdened with duties as excessive as 50 per cent. His remarks reported by ANI, sign cautious optimism of a decision to the continuing commerce dispute.
Talking at an occasion hosted by the Retailers’ Chamber of Commerce & Business in Kolkata, Nageswaran mentioned he believed the additional responsibility won’t proceed past November-end. “Sure, the unique reciprocal tariff of 25 per cent plus the penal tariff of 25 per cent each weren’t anticipated. I nonetheless consider that geopolitical circumstances could have led to the second 25 per cent tariff however contemplating current developments within the final couple of weeks, I do consider the penal tariff won’t be there after November 30,” ANI quoted him as saying.
Why tariffs doubled to 50 per cent
The extra duties have been imposed after former US president Donald Trump invoked the Worldwide Emergency Financial Powers Act (IEEPA), a 1977 regulation designed for financial sanctions throughout international crises.
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India first confronted a 25 per cent reciprocal responsibility, which was doubled in August 2025 to 50 per cent on a number of merchandise. These greater tariffs apply to imports getting into the US or cleared from warehouses, although some classes have been excluded.
Exemptions cowl iron and metal, aluminium, passenger automobiles and spare components, in addition to semi-finished copper merchandise.
Exporters below stress
The double-layered tariff has raised prices for Indian exporters in sectors akin to textiles, engineering items and processed meals. A partial rollback might ease the stress and restore competitiveness within the US market.
Nageswaran highlighted India’s wider commerce efficiency, noting that annual exports had already reached USD 850 billion and have been on monitor to the touch USD 1 trillion, equal to just about 25 per cent of GDP, ANI reported. The CEA’s remarks got here days after Commerce Ministry’s Particular Secretary Rajesh Agrawal met US Commerce Consultant for South and Central Asia Brendan Lynch in New Delhi, the primary direct engagement since Washington imposed the extra tariffs, citing India’s continued power commerce with Russia. Nageswaran mentioned conversations have been ongoing between the 2 governments. “My hunch is that within the subsequent eight to 10 weeks, we’ll possible see an answer to the tariff imposed by the US on Indian items,” he mentioned.
