CEA Nageswaran: 25% Additional US Tariffs on India May Be Settled Within Two Months

CEA Expects Resolution on US Tariff Issue Within Two Months.

Chief Economic Advisor (CEA) V Anantha Nageswaran on Thursday said the issue of an additional 25% US tariff on Indian goods is likely to be resolved within the next couple of months, with discussions currently underway between New Delhi and Washington.

“I don’t have any inside information, but I expect a resolution to the additional 25% US tariff in the next 8–10 weeks. Conversations are ongoing between the two governments,” Nageswaran said at an event in Kolkata. He added that India’s reciprocal tariffs could be adjusted “somewhere between 10% and 15%.”

The fresh round of negotiations began on September 16, led by Brendan Lynch, Assistant US Trade Representative for South and Central Asia, and Rajesh Agrawal, Special Secretary in India’s Department of Commerce. Lynch’s visit marks the first by a senior US trade official since Washington imposed a 25% tariff and an additional 25% penalty on Indian exports in response to India’s continued purchases of Russian crude oil.

Talks are part of the broader effort to finalize a Bilateral Trade Agreement (BTA), first directed by the leaders of both countries in February. While five negotiation rounds have already been held, the sixth round scheduled for late August was postponed following the tariff hike. Officials aim to conclude the first tranche of the BTA by fall 2025.

The tariff escalation in August saw the US impose duties totaling 50% on Indian exports, covering sectors such as textiles, gems and jewellery, footwear, and chemicals—industries heavily reliant on overseas markets. The move has strained bilateral trade ties, though Prime Minister Narendra Modi recently welcomed US President Donald Trump’s positive remarks on the overall relationship.