Amid the influence of Trump Tariffs, India and the US are on the verge of trade deal that could witness tariffs on Indian exports fall nearly 15%- 16%, says a report. Chief Economic Advisor (CEA) V. Anantha Nageswara was hopeful about the tariff dispute between the countries and stated that the issue would be resolved in the span of the next two months, which would lead to the eventual withdrawal of the white House-imposed penal levies.
What did the CEA say about tariffs and trade talks?
Speaking at the event organized by Bharat Chamber of Commerce in Kolkata, the CEA says: “Although I don’t have a crystal ball or any inside information, my personal confidence is that, in the next couple of months, if not earlier, we will see a resolution at least to the extra penal tariff of 25%”.
He signaled that the talks are going on to decrease the reciprocal tariff from 25% to anything between 10 to 15%. The report stated that India may agree upon a gradual reduction of Russian oil imports, as energy and agriculture have been significant issues of contention.
Apparently, the Russian oil purchases has drawn an additional 25% tariff on Indian exports, over the 25% reciprocal tariffs announced in April. India’s imports about 34% of crude oil from Russia, whereas about 10% of the country’s current oil and gas needs are imported from the US. Additionally, India could enhance the import of non-GM maize from the US, though the duty on these imports will remain unchanged at 15%. The present quota of American corn imports is 0.5 million tonnes annually. The trade deal would be announced at the ASEAN Summit later this month between U.S. President Donald Trump and Prime Minister Narendra Modi. But the two leaders have not confirmed their participation in the summit.