Tariff Relief on the Horizon? US May Soon Lift 50% Duty on Indian Imports

New Delhi (The Uttam Hindu): In a major relief for the Indian economy and exporters, the United States may soon lift steep tariffs of up to 50% imposed on Indian imports. India's Chief Economic Advisor (CEA), V. Anantha Nageswaran, hinted on Thursday that ongoing negotiations between the two countries appear to be successful and the punitive duties could be lifted after November 30th.

Addressing an event of the Merchants' Chamber of Commerce and Industry in Kolkata, CEA V. Anantha Nageswaran said that initially, India was imposed a 25 percent tariff, and on top of that, a 25 percent punitive duty due to geopolitical tensions, bringing the total to 50 percent. However, due to recent developments and positive discussions, there is every hope that this additional duty will be withdrawn after November 30th. He also said that a mutual tariff resolution between the two countries is likely to be reached in the next few months, which will facilitate trade.

It is worth noting that former US President Donald Trump imposed heavy tariffs on several countries, including India, citing US security and economic interests under the International Emergency Economic Powers Act (IEEPA) of 1977. These tariffs on India were later increased to 50 percent, applying to nearly all Indian products sold in the US.

The Chief Economic Advisor also noted that India's exports are steadily strengthening. Currently, India's annual exports are approximately US$850 billion, with a target of reaching US$1 trillion in the next few years. The removal of these tariffs will provide a major boost to Indian exporters and help achieve this goal.