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India's Chief Economic Adviser V Anantha Nageswaran has said that the US could withdraw the 25 per cent penal tariff on Indian goods after November 30, offering relief to exporters burdened with duties as high as 50 per cent. His remarks reported by ANI, signal cautious optimism of a resolution to the ongoing trade dispute.

Speaking at an event hosted by the Merchants’ Chamber of Commerce & Industry in Kolkata, Nageswaran said he believed the extra duty might not continue beyond November-end. "Yes, the original reciprocal tariff of 25 per cent plus the penal tariff of 25 per cent both were not anticipated. I still believe that geopolitical circumstances may have led to the second 25 per cent tariff but considering recent developments in the last couple of weeks, I do believe the penal tariff will not be there after November 30," ANI quoted him as saying.

The additional duties were imposed after former US president Donald Trump invoked the International Emergency Economic Powers Act (IEEPA), a 1977 law designed for economic sanctions during foreign crises.

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India first faced a 25 per cent reciprocal duty, which was doubled in August 2025 to 50 per cent on several products. These higher tariffs apply to imports entering the US or cleared from warehouses, though some categories were excluded.

Exemptions cover iron and steel, aluminium, passenger vehicles and spare parts, as well as semi-finished copper products.

The double-layered tariff has raised costs for Indian exporters in sectors such as textiles, engineering goods and processed foods. A partial rollback could ease the pressure and restore competitiveness in the US market.

Nageswaran highlighted India's wider trade performance, noting that annual exports had already reached USD 850 billion and were on track to touch USD 1 trillion, equivalent to nearly 25 per cent of GDP, ANI reported. The CEA's remarks came days after Commerce Ministry's Special Secretary Rajesh Agrawal met US Trade Representative for South and Central Asia Brendan Lynch in New Delhi, the first direct engagement since Washington imposed the additional tariffs, citing India's continued energy trade with Russia. Nageswaran said conversations were ongoing between the two governments. "My hunch is that in the next eight to ten weeks, we will likely see a solution to the tariff imposed by the US on Indian goods," he said.

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Ankit Kumar is a Senior Sub Editor at Zee Business. He covers international affairs, politics, climate change, business, finance and global elections. With experience across digital med ...LATEST NEWSBy accepting cookies, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts.