India’s Chief Economic Adviser (CEA) V. Anantha Nageswaran expressed optimism that the United States may soon roll back the steep penal tariffs imposed on Indian goods and reduce reciprocal duties, offering some relief to exporters struggling under the burden of higher levies.
Speaking at an event in New Delhi, Nageswaran said the 25% penal tariff imposed by Washington in August could be withdrawn as early as November 30. While he noted that this was his personal assessment and not based on formal assurances, he stressed that recent developments suggested a resolution was likely in the next two months.
“I do believe that the penal tariffs will not be there beyond November 30. It’s not a statement based on any concrete indicator or evidence, but it is my hope that, given the recent developments, I do believe there will be a resolution in the next couple of months on the penal tariff and hopefully, reciprocal tariff also,” the CEA said.
He further indicated that the reciprocal tariff, also set at 25%, may be reduced to a more manageable 10–15% range, easing the burden on Indian exports.
Tariff Dispute Since August
The development comes against the backdrop of the US move last month under the Trump administration to impose steep additional tariffs on Indian exports, citing New Delhi’s continued energy trade with Russia. Some Indian products are currently facing effective duties of up to 50%, sharply squeezing profit margins for exporters in labour-intensive sectors such as textiles, engineering goods, and food products.
Even a partial rollback, analysts say, could ease cost pressures and restore predictability in bilateral trade.
Recent High-Level Talks
The remarks follow the first high-level meeting since the tariff announcement, where India’s chief trade negotiator Rajesh Agrawal, Special Secretary in the Commerce Ministry, met with US Trade Representative for South and Central Asia Brendan Lynch in New Delhi earlier this week.
While India continues to push for a negotiated settlement, officials acknowledge that US domestic political factors could shape the eventual outcome.
Hope for Exporters
Industry bodies and exporters have been pressing for relief, warning that sustained higher duties could hurt India’s competitiveness in key markets. Nageswaran stressed that while the government was hopeful of a breakthrough, it was preparing for multiple scenarios.
For now, all eyes remain on whether the United States follows through on a rollback by end-November and pares down reciprocal duties to a more sustainable level. Until then, uncertainty continues to weigh on one of India’s most significant trade relationships.