Senior Indian official predicts end to US punitive tariffs by December

The Indian government’s chief economic advisor, V. Anantha Nageswaran, expressed his optimism this Thursday about a possible removal of the punitive tariffs imposed by the United States on Indian products, something he believes will happen after November 30. “Considering recent events (…), I believe, and I have no particular reason to say it, it’s my intuition, that the punitive tariff will not be there after November 30,” he said during an event in the Indian city of Calcutta (east). Washington and New Delhi completed this week the sixth round of a bilateral dialogue, the first in-person meeting of the negotiating teams since the tariff escalation. The meeting was described as “positive and constructive” by both the Indian Ministry of Commerce and the U.S. embassy. “I believe there will be a resolution in the next two months on the punitive tariff and, hopefully, on the reciprocal tariffs,” Nageswaran added today while mentioning the ongoing conversations between India and the U.S. The trade conflict with the United States originated due to India’s decision to continue importing oil from Russia. In response, the U.S. Government invoked the International Emergency Economic Powers Act (IEEPA) to impose an initial tariff of 25%. The tension escalated and Washington added an additional 25% “punitive tariff”, raising the total rate to 50%, after arguing that India did not offer equitable access to its own markets. However, the US customs notification excluded from these tariffs key sectors for the Indian economy, such as iron and steel products, aluminum, passenger vehicles and their spare parts.

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According to a report by the Global Trade Research Initiative (GTRI), despite high tariffs, 30.2% of India’s exports to the United States, valued at $27.6 billion, continue to enter the US market tax-free.