The U.S. could raise 25% fines for Indian goods after November 30: Chief Economic Advisor
India’s chief economic adviser v Anantha Nageswaran said the U.S. could withdraw a 25% fine tariff on Indian goods after November 30, putting exporters on a burden of up to 50%. His remarks were reported by ANI, which is cautiously optimistic about the resolution on the ongoing trade dispute.
Speaking at events hosted by the Kolkata Businessmen’s Chamber of Commerce and the Kolkata Chamber of Commerce, Nageswaran said he believes the additional responsibilities may not exceed the end of November. “Yes, the initial reciprocity tariff was 25% plus 25% penalty, neither of which were expected. I still believe the geopolitical situation may have resulted in a second 25% tariff, but given the latest in the past few weeks, I do believe that the criminal tariff will not be after November 30,” Ani quoted him as saying.
Why the tariffs doubled to 50%
The bill was imposed in 1977 for economic sanctions during the foreign crisis after former U.S. President Donald Trump invoked the International Emergency Economic Powers Act (IEPA).
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India first faces a reciprocity rate of 25%, doubling several products in August 2025 to 50%. These higher tariffs apply to imports into the United States or to clear from warehouses, although some categories are excluded.
The exemption covers iron and steel, aluminum, passenger cars and spare parts, as well as semi-finished copper products.
Exporters under pressure
The double-layer tariff has raised costs for Indian exporters in areas such as textiles, engineered products and processed food. Partial rollbacks can relieve pressure on the U.S. market and restore competitiveness.
Nageswaran highlighted India’s broader trade performance, noting that annual exports have reached $850 billion and are expected to hit $1 trillion, equivalent to nearly 25% of GDP. The CEA’s speech came days after the U.S. Trade Representative, who met with Brendan Lynch in New Delhi by the Special Secretary of Commerce, Rajesh Agrawal, in New Delhi, was the first direct involvement since Washington imposed additional tariffs, which is the ongoing energy trade in India and the ongoing tariffs from Russia. Nageswaran said there was a dialogue between the two governments. “My intuition is that over the next eight to ten weeks we may see a solution to the tariffs imposed by the United States on Indian goods,” he said.
