FX.co ★ U.S. May Roll Back Tariffs on India Amid Thawing Ties

The United States is on the verge of potentially removing its 25% punitive tariff on Indian goods while reducing reciprocal duties from 25% to a range of 10–15%, according to India's Chief Economic Adviser, V. Anantha Nageswaran. During an event in Kolkata, Nageswaran expressed optimism that a resolution regarding the extra 25% tariff could be reached in the coming months, if not sooner. He also indicated that reciprocal duties might be scaled down. These comments follow recent "positive" and "forward-looking" trade discussions between New Delhi and Washington, which have heightened expectations for a breakthrough. Previous tensions stemmed from President Donald Trump's decision in August to impose these tariffs in response to India’s acquisition of Russian oil. This move effectively doubled India's tariff burden to 50% as part of U.S. measures aimed at pressuring Moscow. However, more recently, Trump has taken a softer stance, with a phone conversation with Prime Minister Narendra Modi suggesting reduced tensions. During the call, Trump expressed optimism about reaching a trade agreement.