Trump May Roll Back 25% Tariffs On Indian Imports After November, Says CEA

Chief Economic Adviser (CEA) V Anantha Nageswaran on Thursday expressed optimism that the United States may withdraw the additional 25% penal tariff on Indian imports after November 30, signaling potential relief in the ongoing trade dispute between New Delhi and Washington.

Speaking about the tariff standoff, Nageswaran noted that efforts were already underway to ease tensions and improve bilateral trade ties. He highlighted that while the original reciprocal tariff of 25% and the subsequent penal tariff of another 25% had not been anticipated, there were encouraging signs that the situation could soon change.

"All of us are already at work, and I will take some time to talk about the tariff here. Yes, the original reciprocal tariff of 25 per cent plus the penal tariff of 25 per cent both were not anticipated. I still believe that geopolitical circumstances may have led to the second 25 per cent tariff, but considering recent developments in the last couple of weeks and so on, I do believe that and I have no particular reason to say so-it is my intuition-that I do believe the penal tariff will not be there after November 30," Nageswaran said, as quoted by news agency ANI.

The CEA's remarks come at a time when India-US trade relations have been under strain due to Washington's tariff measures, which were imposed under President Donald Trump's administration. Nageswaran's statement, however, suggests that a rollback could be on the horizon, offering relief to Indian exporters and paving the way for smoother economic engagement between the two countries.