US May Drop Penal Tariffs, Lower Duties on Indian Goods
India’s Chief Economic Adviser V. Anantha Nageswaran said the United States may soon lift the 25% penal tariff imposed on Indian goods. He added that India’s reciprocal tariff of 25% could also be reduced to around 10-15%.
Timeline and Expectations
Nageswaran indicated that the penal tariffs might be scrapped by the end of November. He clarified that this was his personal assessment, not a confirmed policy move, but cited ongoing trade talks as a positive sign for an agreement within months.
Why This Matters
The punitive tariffs were introduced after U.S. concerns over India’s purchases of Russian oil. These duties have increased costs for Indian exporters, particularly in sensitive sectors. A rollback would ease pressure on exporters and boost trade confidence.
What Still Needs to Happen
The final decision depends on negotiations between New Delhi and Washington. It remains unclear which product categories will be affected first and how quickly new tariff structures will take effect. Exporters are awaiting official confirmation from both governments.
