US President Donald Trump had sparked alarm last month after announcing a 50% tariff against most imports from India. The steep levy was imposed in two tranches — with the POTUS first announcing a 25% reciprocal tariff as bilateral trade talks stumbled. An additional 25% tariff was later imposed against New Delhi over continued purchase of Russian oil. Chief Economic Adviser V Anantha Nageswaran however predicted that the latter would be removed by the end of November.
“Underneath the surface, conversations are going on between the two governments. My hunch is that in the next eight to ten weeks, we will likely see a solution to the tariffs imposed by the US on Indian goods…I hope that the penal tariff would possibly be removed by the end of November,” Nageswaran reportedly said.
‘By November 30…’
The CEA admitted that the imposition of a 50% tariff was “not anticipated” but added that Indian officials were “already at work”. The remarks came even as ties between the two countries appeared to thaw this week — with Trump hailing his “friend” Modi for doing “a tremendous job”.
“I still believe that geopolitical circumstances may have led to the second 25% tariff, but considering recent developments in the last couple of weeks and so on, I do believe that and I have no particular reason to say so it is my intuition that I do believe the penal tariff will not be there after November 30,” ANI quoted him as saying.
Trump-Modi thaw
Ties between the countries had come under severe strain last month as the POTUS imposed a 50% tariff against India for its continued purchase of Russian oil. Top aides had also held New Delhi responsible for ongoing ‘bloodshed’ in Ukraine — claiming that India was indirectly financing the Russian war and being a “laundromat for the Kremlin”. President Trump heralded a thaw last week — referring to Modi as a close friend and reiterating the “special relationship” between the US and India. Both leaders had also pledged to resume talks and voiced confidence in unlocking the “limitless potential” of a trade relationship.
“Just had a wonderful phone call with my friend, Prime Minister Narendra Modi. I wished him a very Happy Birthday! He is doing a tremendous job. Narendra: Thank you for your support on ending the War between Russia and Ukraine!” the POTUS wrote on Truth Social earlier this week.
“Thank you, my friend, President Trump, for your phone call and warm greetings on my 75th birthday. Like you, I am also fully committed to taking the India-US Comprehensive and Global Partnership to new heights. We support your initiatives towards a peaceful resolution of the Ukraine conflict,” Modi responded via X.