Will the India-US tariff deadlock be resolved in 8-10 weeks?
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Synopsis
The Chief Economic Advisor of India, V. Anantha Nageswaran, expresses optimism regarding the resolution of tariff issues with the US within the next 8-10 weeks. Ongoing discussions aim to reconcile trade differences and reduce tariffs, boosting hope for Indian exporters and strengthening bilateral relations.
Key Takeaways
- India-US tariff resolution expected in 8-10 weeks.
- Ongoing discussions to reduce reciprocal tariffs.
- Additional tariffs raised total to 50% on Indian goods.
- Trade agreement negotiations are intensifying.
- Positive outlook from both governments.
Kolkata, Sep 18 (NationPress) In a promising sign for Indian exporters, Chief Economic Advisor (CEA) V. Anantha Nageswaran mentioned on Thursday that a resolution to the India-US tariff challenges is anticipated within the next 8-10 weeks.
During a session organized by the Bharat Chamber of Commerce in Kolkata, Nageswaran highlighted that discussions between the two governments are already in progress to address the impasse.
“I believe that within the next eight to ten weeks, we might witness a solution regarding the punitive tariffs imposed by the US on Indian exports,” he conveyed to the audience.
Nageswaran also pointed out that the ongoing India-US negotiations aim to decrease reciprocal tariffs from 25% to approximately 15%.
The additional 25% tariff on Indian imports took effect on August 27, following New Delhi's purchase of Russian oil, raising the total tariffs on Indian products entering the US to 50%.
When asked about the phone conversation between Prime Minister Narendra Modi and US President Donald Trump on PM Modi's 75th birthday, Nageswaran expressed hope that the trade stalemate would be resolved promptly.
“I believe discussions are ongoing, and as I previously mentioned, I hope for a swift resolution,” he told IANS during the event.
In the meantime, both India and the US have committed to augmenting efforts to finalize a mutually beneficial trade agreement (BTA).
A delegation from the office of the United States Trade Representative, headed by Chief Negotiator Brendan Lynch for the India-US Bilateral Trade Agreement, arrived in India this week.
They engaged in talks regarding India-US trade relations, including the Bilateral Trade Agreement, alongside a team of Indian officials, led by Special Secretary Rajesh Agrawal.
According to a statement from the Commerce and Industry Ministry, “Recognizing the long-standing significance of bilateral trade between India and the US, the discussions were positive and forward-looking, covering various components of the trade deal. It was agreed to intensify efforts for an early conclusion of a mutually advantageous Trade Agreement.”
Sources from the Commerce Ministry indicated that trade discussions are ongoing at multiple levels, with a constructive mindset evident on both sides while addressing trade matters.
Lynch's visit coincided with rising expectations for a trade agreement, fueled by optimistic remarks from both Trump and PM Modi.
Point of View
It is crucial to recognize the importance of resolving trade issues between India and the US. The ongoing discussions signify a commitment to enhancing bilateral relations and fostering economic cooperation. This resolution will not only benefit exporters but also strengthen the overall economic landscape of both nations.
NationPress
20/09/2025
Frequently Asked Questions
What are the current tariff issues between India and the US?
The current tariff issues involve a punitive 25% tariff imposed by the US on Indian goods, taking the total tariffs to 50%.
How long will it take to resolve the tariff stalemate?
Chief Economic Advisor V. Anantha Nageswaran indicated that a resolution is likely within 8-10 weeks.
What steps are being taken to resolve these issues?
Ongoing discussions between Indian and US officials are aimed at reconciling tariff differences and finalizing a trade agreement.
