Donald Trump may remove 25% penal tariff on India after November: Chief Economic Adviser

Donald Trump may remove 25% penal tariff on India: In a latest update related to the US tariff imposed on India, the Chief Economic Adviser (CEA) V Anantha Nageswaran today hinted a optimism.  As per Nageswaran, the penal tariff currently being imposed on India on certain imports is expected to be removed after November 30. 

It is expected that the current penal tariff imposed on Indian imports by the US government will be withdrawn after November 30, as per Chief Economic Adviser (CEA) V Anantha Nageswaran. He expressed that if this happens the trade ties between the two countries will see a slight improvement.

Hinting optimism on the tariff tensions between India and the US, he stated that the developments are underway to improve the situation.

Chief Economic Adviser (CEA) V Anantha Nageswaran statement

In his statement to ANI, he was quoted saying "All of us are already at work, and I will take some time to talk about the tariff here. 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 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."

Donald Trump's additional tariff

It is to be noted that the US President Donald Trump levied additional 25% tariffs on Indian imports, due to the trade being done between India and Russia. Notably, additional duties were levied on Indian goods after the already announced 25% reciprocal tariffs. 

Nageswaran in his statement to PTI, said, "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 tariff imposed by the US on Indian goods." 

The additional tariffs took effect on August 27. It is to be noted that the decision reciprocal tariffs on India by Donald Trump and other countries was stated unlawful by the US Appeals Court. The tarrif was invoked by Trump under the International Emergency Economic Powers Act (IEEPA).